HomeMy WebLinkAbout02/21/01 AGENDA CITY COUNCIL MEETING AGENDA
FEBRUARY 21, 2001
1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M.
A. General Council Business
2. CALL TO ORDER: 5:30 P.M.
A. Pledge of Allegiance
B. Invocation
3. CONSENT AGENDA ?(~ (~ ~-'_
A. Minutes of Meeting - February 13, 2001 (#AB01-043) /
4. CLAIMS/CHECK REGISTERS
5. COUNCIL MEMBER REPORTS
6. MAYOR'S REPORT
· Ceremony to honor Lt. Tom Pratt for 30 years of dedicated service to the City of
Bremerton Po/ice Department
7. LEGISLATIVE REPORT
8. PUBLIC RECOGNITION - (Comments limited to 3-minutes)
PUBLIC HEARING - ORDINANCES
A. Ordinance No. 4756 (Second Reading), Authorizing the Issue of General Obligation Bonds
to Finance the Clubhouse at Gold Mountain Golf Complex; and Accepting the Purchase
Offer of Bank of America (#AB01-044)
B. Ordinance (First Reading) Vacating the Alley located between Naval & Roosevelt
Avenues, and between 6th & 7th Streets (#AB01-045)
C. Ordinance (First Reading) Vacating approx. 210' of Yantic Avenue South of 1st Street, and ~___,/"~
the Alley lying South of 1st Street between Yantic & Hartford Avenues (#AB0. 1-046)
/ ._..,
D. Ordinance (First Reading) Vacating the Southerly 1000' of Forrest Street between 1st .._~'~
Street (Vacated) and Kitsap Way (#AB01-047)
10. PUBLIC HEARING - ORDINANCES
A. Presentation of CSO Plan Update
B. Resolution No. 2802, Approving the CSO Plan Update and Facility Plan (#AB01-048)
C. Resolution No. 2803, to Hire a City Attorney (#AB01-049) --~
11. ADJOURNMENT OF MEETING
THE CITY COUNCIL WILL ADJOURN TO THE CONFERENCE ROOM IMMEDIATELY
FOLLOWING THIS MEETING FOR A STUDY SESSION TO DISCUSS "THE ENDANGERED
SPECIES A CT".
PROCLAMATION
WHEREAS, Lt. Thomas Pratt beeame a member of the Bre~nerton Police
Department on March 1, 1971 and has served the City of Bremerton for 30 years as a loyal
and dedieated employee; and
WHEREAS, Lt. Thomas Pratt's expertise in thc Armed Forces Day Parade, the
Blackberry Festival and many other community events has contributed to the success and
smooth runnh~g ofthose events for many years; and
WHEREAS, Lt~ Pratt has been involved in the Traffie Division as a Traltie Officer,
Sergeant and Lieutenant. He has trained a generation of poliee omcers in traffic accident
investigation, Emergeney Vehicle Operation, Radar Certifieations and driver training; and
WHEREAS, Lt. Pratt is known throughout the community as a man of honor,
integrity and trust who has given over half his life to the service and protection ofthe
citizens of Bremerton.
NOW, THEREFORE, I, Lym~ S. Horton, Mayor of the City of Bremerton, do
hereby proclaim February 21, 2001 to be
Lt. Tom Pt.~tt
and eaH upon aH the eitizens in om' commm~ity to honor and show sincere appreeiation for
Lt. Pratt of the Bremerton Police Department by deed, remark and attitude. IeaH upon aH
o~w citizens to make every effort to express their thanks to our officers who make it possible
for us to leave our homes knowing they are protected by officers willing to sacrifice their
lives if necessary, to gnard our loved ones, property and government against aH who would
violate the laxv.
SIGNED, this 21st day of February 2001.
Lynn S. Horton, Mayor
The Bremerton Police Department
is inviting you to attend the
City Council Meeting
on February 21, 2001
At 5:30 p.m.
To recognize
LT. TOM PRATT
for 30 years of
loyal and dedicated service
to the Police Department
and the citizens of Bremerton.
Combined Sewer Overflow Reduction Facility Plan Update
February 21, 2001
Presentation Outline
1) Introduction and Background
a) CSO Basins in Bremerton
i) 10 CSO Basins; All of East Brem, and 4 in West Brem.
b) Purpose of CSO Reduction Plan
i) Details required improvements to meet State Discharge Limitations.
ii) Original CSO Reduction Plan developed in 1992. Facility Plan Update
completed in 2000.
2) East Bremerton Combined Sewer System
a) Pre-Reduction System Hydraulics
i) Flow from Tracyton Beach (OF-6) pumped to Pine Road (OF-I)
ii) Flow from Trenton Avenue (OF-7) pumped to East Park (OF-4)
iii) Flow from Pine Road (OF-I), Stevens Canyon (OF-2), Cherry Ave (OF-3),
and East Park (OF-4) flow by gravity to the Inverted Siphons
iv) Design Storm generates flows approximately 36 times peak dry weather flow:
Qpeak, Design (wet weather, wet season) = 18,000 gpm, versus Qpeak (dry
weather, wet season) = 2,000 gpm, versus Qpeak (dry weather, dry season) =
about 500 gpm
v) Major system limitation is inverted siphons - existing capacity is about 4,000
gpm.
b) Improvements Recommended in the CSO Facility Plan Update and Status
i) Pine Road
(1) Scope is construction of storage and a CSO Treatment Plant.
(2) Compliance by 2000 - basin is in compliance.
(3) Status: the storage facility is operational and essentially complete. The
City is currently reviewing the 60% treatment plant design. The treatment
plant is anticipated to bid in the spring.
ii) Stevens Canyon
(1) Scope is conveyance on Lebo Avenue to the CSO Treatment Plant.
(2) Compliance by 2006.
(3) Status: the conveyance is operational and essentially complete. Some
surface restoration remains. Basin will be in compliance when CSOTP is
constructed.
iii) East Park
(1) Scope is gravity sewer construction and abandonment of the overflow
structure.
(2) Compliance by 2001
(3) Status: the design is underway. Project is expected to advertise in April
2001.
iv) Trenton Avenue
( 1 ) S cop e i s maj or reb ui ldo f one pump station and construction o f a new
forcemain. Also minor improvements to another pump station and
modifications to the overflow structure and gravity sewer rehabilitation.
(2) Compliance by 2002
(3) Status: city is currently negotiating a scope of work and budget for this
design. This design and construction will be completed simultaneous with
Cherry Avenue.
v) Cherry Avenue
(1) Scope is gravity sewer construction from the overflow structure to the
beachmain, and replacement of a section ofbeachmain.
(2) Compliance by 2007
(3) Status: city is currently negotiating a scope of work and budget for this
design. This design and construction will be completed simultaneous with
Trenton Avenue.
vi) Tracyton Beach
(1) Scope is storage (approximately 50,000 gallons) and PS improvements.
(2) Compliance by 2004
(3) Status: the overflow structure was modified in 2000. City is gathering
data to confirm peak flow. It is believed that the planned storage may be
reduced or eliminated.
3) West Bremerton Combined Sewer System
a) System Hydraulics
i) Flow from the Warren Avenue Basin (OF-13), Anderson Cove Basin (OF's -
8-12), Callow Avenue Basin (OF-17), and Pacific Avenue Basin (OF-16)
pumped to Crosstown Pipeline
ii) Design Storm generates flows approximately 31 times peak dry weather flow:
Qpeak, Design (wet weather, wet season) -- 31,000 gpm, versus Qpeak (dry
weather, dry season) = about 1,000 gpm
iii) Major system limitation is the Crosstown Pipeline.
b) Required Improvements and Status
i) Warren Avenue Basin
(1) Scope was construction of separated storm sewers.
(2) Compliance required by 1995, and is complete.
ii) Anderson Cove Basin
(1) Scope is a combination of pump station improvements, separation, and
surcharge of existing sewers for storage
(2) Compliance for OF-8 and 9 was required by 1999, and is complete.
Compliance for OF l0 - 12 are required by 2005. OF-10 completed in
2000. OFol 1 requires a diversion that will be constructed in conjunction
with a diversion for OF-11, and pump station improvements for OF-12 are
required to be constructed by 2005.
iii) Callow Avenue Basin
(1) Scope is separation for priorities 1, 2, 4 and 5. Priority 3 is pump station
and storage.
(2) Priorities 1 and 4 were completed in 1997, and priority 2 was completed in
1999. Priority 3 is pump station and storage construction, and is required
in 2002, and Priority 5 is separation and is required in 2003.
(3) Status: currently negotiating scope of work for design of both Priority 3,
and 5. Anticipate beginning construction of both this year.
iv) Pacific Avenue Basin
(1) Scope is separation and storage.
(2) Compliance required by 2007.
(3) Status: City will expedite relocation of the existing overflow structure to
gather additional data. It is believed that the storage at this location may
be reduced or eliminated by separation.
v) Charleston WWTP Upgrade
(1) The CSO reduction program will require increased capacity at the WWTP
to accommodate increased flows. Currently evaluating Scope of Work for
this capacity.
4) Private Property Separation and Inflow Reduction
a) Benefits of the City's program for elimination of inflow from private property.
i) Reduce O&M costs; flows at both the WWTP and the CSOTP
ii) In Callow Avenue Basin, Pacific Avenue Basin, and Tracyton Beach Basin,
inflow reduction will minimize or eliminate the required storage.
iii) Create capacity in City infrastructure for a safety factor and to accommodate
growth.
5) Funding Issues
a) Estimated Cost of remaining work is approximately $24 Million.
b) City has received $15M in grants and loans to fund remaining work. City will
apply for additional funding this year to complete all remaining work.
%
EAST BREMERTON
EXISTING FLOW PROFILE
-- PEAK BASIN FLOW PEAK EAST BREMERTON
FLOW = 18,300 GPM
(~ = EXISTING PEAK FLOWIN PIPE
1~ = EXISTING PEAK OVERFLOW RATE
EAST BREMERTON BEACH MAIN PROFILE
FLOW IN PIPE
NOTE: ALI
FIG1-2 6COLR.DWG LAYOUT 2
f
!
lEACH
tENS
/
'% oF-~.,' .--
0F-11
· 13
CE-2
;E-3
OB-1
~ C E-4A
/
CITY OF BREMERTON /'~----'
CSO BASINS-WE,ST ~
CSO REDUCTION 1.DWG LAYOUT
AGENDA BILL
BREMERTON CITY COUNCIL
I. SUBJECT: FOR AGENDAOF: FEBRUARY 21, 2001
ORIGINATING DEPT.' CITY COUNCIL
MINUTES OF MEETING-- FEBRUARY 13, 2001 ORIGINATOR: JOHN E. LAW, PRESIDENT
DATE SUBMITTED: FEBRUARY ]$, 200~
-). CLEARANCES: (Comment on back if necessary) 3. EXHIBITS:
5NDORSEMENT ~ INFORMATION ~ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
~IAYOR COUNCIL PRESIDENT .,,~ ~ ~-~-~'/_ ~J
SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
RECOMMENDATION:
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
:~ULLED [] TABLED B APPROVED I"1 DISAPPROVED FI AMENDED I'1 DATE:
;OUNCIL DIRECTIVE:
..,, .o.: 01- 4'3
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT (CONTINUED):
5. IMPACT OF NON-PASSAGE:
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
7. RESEARCH SOURCES:
TAPE #1752 UNAPPROVi:~- DRAF~F
CITY COUNCIL MEETING MINUTES
Tuesday- February 13, 2001
The weekly meeting of the City Council of the City of Bremerton was called to order in the City
Council Chambers, 239 4th Street, Bremerton, Washington, Tuesday, February 13, 2001, at 5:30
P.M., with Council President John Law presiding. Council members present were Conrad Esser,
Carol Arends, David Fart, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne Olsen. Council
member Jim Reed was absent. Also present were Deputy City Clerk Paula Johnston; Special
Counsel Glenna Malanca; and Legislative Assistant Lori Smith.
The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed
by the invocation given by former Council MemberAI Colvin.
President Law made the following announcements:
1) A Pre-Council Session to discuss general business was held in the Council Conference Room.
2) Item 9D - "Budge Adjustment No. 01-3 for Special Counsel' was pulled from the Agenda tonight.
CONSENT AGENDA
A. Minutes of Meeting - January 24, 2001 (#AB01-037)
B. Minutes of Meeting - January 31,2001 (#AB01-038)
C. Minutes of Meeting - February 7, 2001 (#AB01-039)
#0025 M/S/C/U (McConnell/Olsen) Move to approve Consent Agenda as presented.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a
listing that had been made available to the Council.
#0055 M/S/C/U (Esser/McConnell) On February 13, 2001, the Council does approve for payment
those vouchers included and further described as follows: Checks 249049 through 249323 in the
amount of $415,306.89.
Mike Shepherd arrived to the meeting at 5:35 P.M. and was not available for the previous two votes.
COUNCIL MEMBER REPORTS
Conrad Esser invited citizens to attend the combined District 8 & 9 meeting on Thursday, March 8,
2001 beginning at 6:30 P.M. at the Oyster Bay Public Works Conference Room located at 100 Oyster
Bay Avenue to discuss "Funding Sources for City Road Repair", as well as a discussion on the
"Possible Elimination of the B&O Tax".
Carol Arends announced that she, along with David Fart, would be hosting a combined District 6 & 7
meeting on Tuesday, February 20, 2001 at 6:30 P.M. in the boardroom of the Bremerton School
Administration Building. Citizens will have an opportunity to discuss the proposed Bremerton/Kitsap
County Regional Government Center with guest speakers Norm McLoughiin and Roger Waid of the
Kitsap County Coordinating Housing Authority.
Mike Shepherd again encouraged citizens to "keep their money in town" by shopping in Bremerton;
and also announced the "Ahn Trio" would be performing this weekend at the Admiral Theater.
Ed Rollman reminded the public that the "Smile Mobile" would be coming to Bremerton February 20th
through March 2nd for Iow-income children to receive free, quality dental care.
Cecil McConnell reported on his recent eye surgery for cataracts.
TAPE #1752 :: .... '"~'
City Council Reg. Mtg. Minutes
February 13, 2001
Page 2 of 4
Wayne Olsen stated that with weather permitting, the construction project on Lebo Blvd should be
completed soon.
John Law announced the next District 3 meeting would be held on Tuesday, February 20, 2001, 7:00
P.M. at the Senior Center. The program will be an "Open Forum" to discuss City issues.
MAYOR'S REPORT
Mayor Hod;on announced the Ferry Tariff Policy Committee meeting was being held this evening
from 6:30 to 9:00 P.M. at the Howard Johnson Plaza Hotel to discuss the proposed fare increases for
the ferry system; and stated a report would be forthcoming regarding the technical workshops to deal
with the downtown strategy held earlier today.
LEGISLATIVE REPORT - There was no report this evening.
PUBLIC RECOGNITION - There were no reports or comments this evening.
9A - BUDGET ADJUSTMENT NO. 01-2 FOR EQUIPMENT RENTAL FUND 5t0 (#AB01-040):
It was noted that this budget adjustment is necessary to provide funding to replace the computerized
sign plotter for the Traffic Maintenance Division.
There were no comments from the public.
#0555 M/S/C/U (FardMcConnell) Move to approve budget adjustment No. 01-2 in Fund 510 for
$10,000.
9B - PROFESSIONAL SERVICES AGREEMENT WITH RYAN, SELLS, UPTEGRAFT, INC (#AB01-
041): Risk Manager Peggy Lesser summarized that the City needs to appoint defense counsel to
represent the City of Bremerton in Linda Lee Kreifels vs. City of Bremerton, a police liability matter.
Defense costs are unknown at this time but can not exceed $20,000 under the terms of this contract.
There were no comments from the public.
Mr. Esser stated that although he supports protecting the liability matters of the Police Department,
he voiced concern that the City continues to go outside for legal service contracts. He suggested that
approval of this item be contingent upon verification of canceling one of the government service
contracts signed by the Mayor the end of last year. Mayor Horton replied that the City is going to
more outside legal contracts because currently, there is only one Assistant City Attorney. She further
stated that when outside legal services are required, an effort is made to search for a firm with
specific litigation skills to match the needs of a particular case. She clarified that not a great deal of
money was spent on the other contracts, but until adequate staff is in the City Attorney's office,
outside contracts will be necessary to continue the legal work for the City of Bremerton. She also
clarified that although this contract states costs would not exceed $20,000, it does not necessarily
mean the full $20,000 will be spent, and this contract, as all others, would be diligently monitored.
#0858 M/S/C/U (Arends/McConnell) Move to approve the professional services agreement with
RYAN, SELLS, UPTEGRAFT, INC.
TAPE #1752 .......... :: -~
City Council Reg. Mtg. Minutes
February 13, 2001
Page 3 of 4
9C - PROFESSIONAL SERVICES AGREEMENT EXTENSION FOR CITY COUNCIL
REPRESENTATION ON ISSUES RELATING TO REJECTION OF CITY ATTORNEY'S
RESIGNATION AND ACCEPTANCE OF WITHDRAWAL (#AB01-042): Council President John Law
reported that outside legal counsel has been retained to represent the Council to support the
Council's rejection of the City Attorney's resignation, and acceptance of the City Attorney's withdrawal
of her resignation. The contract expired on December 31,2000, and now needs to be extended to
June 30, 2001 if representation of the Council is to be maintained.
There were no comments from the public.
Mr. Shepherd clarified that this was not an increase in the contract amount for money, but rather an
extension of the date for the existing contract. Mr. Fart stressed that is was the Council's fiscal
responsibility to conclude this issue, and to quit spending this money.
Mr. Olsen asked why a Seattle attorney was chosen; and Carol Arends asked why a contract
extension through the end of June was required. Ms. Malanca explained that it is not yet known
whether a Judge from Pierce, King or Kitsap County Court will hear this case, but it is likely to be a
Judge from King County, and therefore a Judge from Seattle makes more sense. Also, this is the
same attorney that successfully handled the 1-695 matter. It was also explained that the end of June
was chosen to ensure the time frame for the probability that the Mayor's attorney would depose each
and every Council member. However, once it is determined who will hear this case, an attempt will
be made for a clean, clear Summary Judgement, which could negate the need for the depositions.
#'1136 M/S/C/U (Shepherd/Esser) Move to extend the Professional Services Agreement with LANE
POWELL SPEARS LUBERSKY to June 30, 2001.
Voted in favor of this motion: Arends, Esser, Olsen, Rollman, Shepherd, and Law
Voted opposed to this motion: Farr and McConnell
Motion carried: 6-Yes; 2-No
an_ QI In~'3_~:'T' Ar~ II IQTI~JI~-klT kl~"~ t"l,l_'"J Et"kD ~DCPIAI /'~/"'~11kl~l::l i~Al:t/~l,l_n,4~. Item was pulled
from the Agenda tonight.
10A - ORDINANCE (FIRST READING) AUTHORIZING THE ISSUE OF GENERAL OBLIGATION
BONDS TO FINANCE THE CLUBHOUSE AT GOLD MOUNTAIN GOLF COMPLEX; AND
ACCEPTING THE PURCHASE OFFER OF BANK OF AMERICA (#AB01-044): City Treasurer Rich
Hanna announced that this ordinance will authorize the financing necessary to design, construct,
and furnish the new clubhouse at Gold Mountain Golf Course. Council has reviewed this project in
the context of the 2000-2005 ClP, the 2001-2002 Budget as well as the awarding of the contracts for
clubhouse design and construction. The bond issue proposed is a 20-year, Limited Tax General with
level debt service. While the debt will be a general obligation of the City, it is expected that repayment
will be made from the revenues of the Golf Course.
There were no comments from the public.
#1347 MISIC/U (Olsen/McConnell) Move to approve the ordinance on first reading authorizing the
bond issue for the clubhouse at Gold Mountain.
City Council Reg. Mtg. Minutes
February 13, 2001
Page 4 of 4
With no further business, meeting concluded at 6:15 P.M.
Prepared and Submitted by:
LORI SMITH, Legislative Assistant
Attest:
PAULA JOHNSTON, Deputy City Clerk
JOHN LAW, City Council President
City of Bremerton
JL/PJ/Is/cge
c: Normal Distribution
File
AGENDA BILL
BREMERTON CITY COUNCIL _ . .,j~_ ___.
1. SUBJECT: ORDINANCE NO, ~L7 ,~ ~:2 FOR AGENDA OF: February 21,2001 (:"
ORIGINATING DEPT: Treasurer
Authorizing the Issue of General Obligation Bonds to ORIGINATOR: Rich Ha~
Finance the Clubhouse at Gold Mountain Golf Complex DATE SUBMITTED: January 5, 2001
and Accepting the Purchase Offer of Bank of America.
2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS:
Dir. Parks and Rec. Bond Ordinance ,~'~-~ ~_
. Official Statement
Dir. Admin Serv:
Fiscal & Budget/,..-~~~-f'/3~,.~L-,'..--
P. urchase Offer (At Second Rea, ding) ~tJ' [I ~0 {~
Operations ~
ENDORSEMENTS '.~ INFORMATION APPROVED BY COUNCIL P/~NT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTIO~N:
This ordinance will authorize the financing necessary to design, construct and furnish the new clubhouse at Gold
Mountain Golf Course. This project has been reviewed by Council in the context of the 2000 - 2005 ClP, the 2001 -
2002 Budget as well as the awarding of the contracts for clubhouse design and construction. The bond issue
proposed is a 20 year, Limited Tax General Obligation with level debt service. While the debt will be a general
obligation of the City, it is expected that repayment will be made from the revenues of the Golf Course.
8. RECOMMENDATION:
.*Mere *,v ........... ,,,,,.v. v ~ ............. flint r~eac[jQg~n~_nce ~"*h'~'~?L .r~4he-bend. issue for *,he .ctubhouse-at-Gold-M0~
Move to pass on second reading Ordinance No.ZirT~'(~authorizing the bond issue for the clubhouse at Gold Mountain
and to accept the purchase offer of Bank of America.
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Dec. 1, 2020
REVIEW DATE: N/A
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE:
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City will not have the funding necessary to pay for the Clubhouse at Gold Mountain.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES, EQUIPMENT OR OTHER RESOURCES:
This project and financing are included in the 2001 - 2002 Budget.
7. RESEARCH SOURCES:
Golf course operating history and fee analysis. Bank of America. City's bond counsel.
For Discussion Purposes Only
w^s. NO O
o i ANC 4 7
AN ORDINANCE of the City of Bremerton Washington relating
to the incurrence of indebtedness; providing for the sale and
issuance of $3,000,000 principal amount limited tax general
obligation bonds, 2001, to pay part of the costs of constructing and
equipping a new clubhouse facility and related facilities at the
City's Gold Mountain Golf Complex; providing for the date,
denominations, form, terms, registration privileges, maturity,
interest rates and covenants of the bonds; establishing a debt
service account for the bonds; and providing for the sale and
delivery of such bonds to Banc of America Securities LLC, Seattle,
Washington
WHEREAS, the City of Bremerton (the "City") currently owns and operates the
City's Gold Mountain Golf Complex (the "Golf Complex"), which contains two public
golf courses; and
WHEREAS, the current clubhouse facility at the Golf Complex is an outdated
facility which is inadequate to meet the needs of the golfers and other users of the Golf
Complex; and
WHEREAS, the City Council has previously approved the design, construction
and equipping of a new clubhouse and other related facilities at the Golf Complex (the
'~Project"); and
WHEREAS, pursuant to chapter 39.53 RCW, the City is authorized to sell and
issue, without an election, limited tax general obligation bonds of the City to finance all
or part of the costs of such Project; and
WHEREAS, the incurrence of such indebtedness by the City will not cause the
total indebtedness of the City to be incurred without the assent of the voters of the City to
exceed the limitations set forth in Chapter 39.36 RCW; and
WHEREAS, the City deems it necessary and advisable that $3,100,000 in
principal amount of Bonds now be sold and issued to provide funds for the Project; and
WHEREAS, Banc of America Securities LLC has offered, by way of the
Purchase Agreement, to purchase such limited tax general obligation bonds upon the
terms and conditions hereinafter set forth; NOW, THEREFORE,
THE CITY OF BKEMERTON DOES ORDAIN AS FOLLOWS:
2NDD~ -2/7/'0
For Discussion Purposes Only
Section 1. Definitions. Unless the context otherwise requires, the terms defined
in this section, for all purposes of this Ordinance (including the recitals hereto) and of any
ordinance supplemental hereto, shall have the meanings herein specified; words
importing the singular number include the plural number and vice versa:
"Beneficial Owner" means, with respect to any Bond, the Person named on the
records of the Custodian as having the right, without a physical certificate evidencing
such fight, to transfer, to hypothecate and to receive the payment of the principal of,
premium, if any, and interest on such Bond as the same becomes due and payable.
"Bond Account" means the 2001 Limited Tax General Obligation Bond Account
in the City's Gold Mountain Golf Course Fund created by this Ordinance for the purpose
of paying and securing the principal of and interest on the Bonds.
"Bonds" means the City of Bremerton, Washington, Limited Tax General
Obligation Bonds, 2001, dated March 1, 2001, in an original aggregate principal amount
of $3,100,000, the sale and issuance of which are authorized by this Ordinance.
''Bond Register" means the registration books on which are maintained the names
and addresses of the owners or nominees of the owners of the Bonds.
''Book-Entry Termination Date" means the fifth business day following the date
of receipt by the Registrar of the City's request to terminate the book-entry system of
registering the beneficial ownership of the Bonds.
"City" means the City of Bremerton, Washington, a first class city, organized and
existing under State law.
"City Council" means the City Council of the City.
"Closing" means the date and time when the Bonds are delivered to the Purchaser
in exchange for payment in full therefor.
"Code" means the Internal Revenue Code of 1986, as heretofore or hereafter
amended, together with all applicable rulings and regulations heretofore or hereafter
promulgated thereunder.
"Custodian" means (a) The Depository Trust Company, New York, New York, or
(b) any successor thereto engaged by the City to operate a book-entry system for
recording, through electronic or manual means, the beneficial ownership of the Bonds, in
which system no physical certificates are issued to the Beneficial Owners of the Bonds,
but in which a limited number of physical certificates are issued to and registered in the
name of the Custodian or its nominee, and delivered to the Custodian; provided, that such
book-entry system operated by the Custodian may include the use of subsystems of
recording the beneficial ownership of Bonds which are operated by parties other than the
.................. 2ND DI~AFT :2'/7101'~': For Discussion Purposes Only
Custodian and the use of a nominee for the Custodian; and the term "Custodian," as used
herein, includes any party operating any such subsystem.
'~Depositories" means the following registered securities depositories: (a) The
Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; (b)
Midwest Securities Trust Company, Capital Structures-Call Notification, 440 South
LaSalle Street, Chicago, Illinois 60605; and (c) Philadelphia Depository Trust Company,
Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103,
Attention: Bond Department.
"Government Obligations" means "government obligations," as defined in
Chapter 39.53 RCW, as now in existence or hereafter amended.
"Letter of Representations" means the Blanket Issuer Letter of Representations,
dated November 19, 1997, between the City and the Custodian pertaining to the payment
of the Bonds and the "book-entry" system for evidencing the beneficial ownership of the
Bonds prior to the Book-Entry Termination Date.
"MSRB' means the Municipal Securities Rulemaking Board.
"NRMSIR" means a nationally recognized municipal securities information
repository designated by the SEC.
"Ordinance" means this Ordinance No. __ of the City.
"Owner" means the person named as the registered owner of a Bond on the Bond
Register.
"Project" means the design, construction and equipping of a new clubhouse and
related facilities, including, but not limited to, landscaping and parking.
"Preliminary Official Statement" means the Preliminary Official Statement
pertaining to the Bonds, dated February 13, 2001.
''Purchase Agreement" means the Bond Purchase Agreement for the Bonds by
and between the City and the Purchaser, which written Purchase Agreement is on file
with the City Clerk and is incorporated herein by this reference.
"Purchaser" means Banc of America Securities LLC.
"RCW" means the Revised Code of Washington, as amended.
"Registrar" means either of the fiscal agencies of the State in Seattle, Washington
(as of the date of Closing, Wells Fargo Bank, National Association), and New York, New
York (as of the date of Closing, The Bank of New York), which Fiscal Agencies are
' //
For Discussion Purposes Only
appointed from time to time by the State Finance Committee pursuant to chapter 43.80
RCW; and "Fiscal Agencies" means both such fiscal agencies
"Rule" means SEC Rule 15c2-12.
"SEC" means the United States Securities and Exchange Commission.
"SID" means a state information depository.
"State" means the State of Washington.
Section 2. Purpose and Description of Bonds. The City authorizes the sale and
issuance of its "Limited Tax General Obligation Bonds, 2001" for the purpose of paying
part of the costs of the Project and to pay certain "incidental costs and costs related to the
sale and issuance" (as defined in RCW 39.46.070) of the Bonds.
The Bonds shall be in the aggregate principal amount of $3,100,000; shall be
dated March 1, 2001; shall be issued in fully registered form as to both principal and
interest; shall be in the denomination of $5,000 each or any integral multiple thereof
within a single maturity, shall be numbered separately in such manner and with any
additional designation as the Registrar deems necessary for purposes of identification;
and; shall bear interest at the rates; and shall mature on the dates and in the principal
amounts, all as set forth below:
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For Discussion Purposes Only
Maturity Dates
(December 1) Principal Amounts Interest Rates
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Bonds shall bear interest (computed on the basis of a 360-day year of twelve
months) from their date or from the most recent interest payment date to which
been paid or duly provided for, whichever is later, payable on June l, 2001,
semiannually therea~er on December 1 and June 1 o£ each year to the maturity or
redemption thereof. If any Bond is not paid upon proper presentment at its
date, the City shall have the obligation to pay interest at the same rate from and
maturity date until such Bond, both principal and interest, is paid in full.
Bonds shall be negotiable instruments to the extent provided by
8-102 and RCW 62A.8-105.
the date of issue of the Bonds, all Bonds maturing in the same maturity year
issued in the form of a single certificate, which certificate shall be registered in
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For Discussion Purposes Only
the name of the Custodian or its nominee, and delivered to the Custodian. The Custodian
shall hold each such Bond certificate in fully immobilized form for the benefit of the
Beneficial Owners pursuant to the Letter of Representations until the earliest to occur of
either (1) the date of maturity of the Bonds evidenced by such certificate, at which time
the Custodian shall surrender such certificate to the Registrar for payment of the principal
of and interest on such Bonds coming due on such date, and the cancellation thereof;
(2) the Book-Entry Termination Date; or (3) the date the City determines to utilize a new
Custodian for the Bonds, at which time the old Custodian shall (provided the City is not
then in default of any payment then due on the outstanding Bonds) surrender the
immobilized certificates to the Registrar for transfer to the new Custodian and
cancellation as herein provided.
For so long as any outstanding Bonds are registered in the name of the Custodian
or its nominee and held by the Custodian in fully immobilized form as described in this
Section 2, the rights of the Beneficial Owners shall be evidenced solely by an electronic
and/or manual entry made from time to time on the records established and maintained by
the Custodian in accordance with the Letter of Representations, and no certificates
evidencing such Bonds shall be issued and registered in the name of any Beneficial
Owner or such Beneficial Owner's nominee.
The City may terminate the "book-entry" system of registering ownership of the
Bonds at any time (provided the City is not then in default of any payment then due on
the outstanding Bonds) by delivering to the Registrar: (a) a written request that it issue
and deliver Bond certificates to each Beneficial Owner or such Beneficial Owner's
nominee on the Book-Entry Termination Date; (b) a list identifying the Beneficial
6 /4
:: : 2NDD~T 21T/0-1
For Discussion Purposes Only
Owners as to both name and address; and (c) a supply of Bond certificates, if necessary
for such purpose. Upon surrender to the Registrar of the immobilized certificates
evidencing all of the then outstanding Bonds, the Registrar shall issue and deliver new
certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent,
naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner
thereof. Such certificates may be in any integral multiple of $5,000 within a single
maturity. Following such issuance, the Owners of such Bonds may transfer and
exchange such Bonds in accordance with Section 10 hereof.
Neither the City nor the Kegistrar shall have at any time any responsibility or
liability to any Beneficial Owner of Bonds or to any other person for any error, omission,
action or failure to act on the part of the Custodian with respect to payment, when due, to
the Beneficial Owner of the principal and interest on the Bonds, proper recording of
beneficial ownership of Bonds, proper transfers of such beneficial ownership, or any
notices to Beneficial Owners or any other matter pertaining to the Bonds.
Section 3. Place, Manner and Medium of Payment. Both the principal of and
interest on the Bonds shall be payable in lawful money of the United States of America.
Prior to the Book-Entry Termination Date, the principal and interest on the Bonds shall
be paid by the Registrar to the Custodian as the Owner thereof, for the benefit of the
Beneficial Owners thereof, in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, interest on the Bonds shall be
paid by check or draft mailed on or before the interest payment date, to the persons
identified as the Owners on the fifteenth day of the month preceding the interest payment
date at the addresses shown for the Owners on the Bond Register. From and after the
For Discussion Purposes Only
Book-Entry Termination Date, principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners at the principal corporate trust office of the
Registrar.
Section 4. Optional Redemption~ Partial Redemption~ Notice~ Open Market
Purchase~ Cancellation. The Bonds maturing in the years 2001 through 2011, inclusive,
shall not be subject to redemption prior to maturity. The Bonds maturing on or after
December 1, 2012 shall be subject to redemption prior to maturity at the option of the
City, in whole or in part on any date (maturities to be selected by the City and by lot
within a maturity in such manner as the Registrar shall determine), commencing on
December 1, 2011, at a price of par plus accrued interest to the date of redemption.
Any Bond in the principal amount of greater than $5,000 may be partially
redeemed in any integral multiple of $5,000. Prior to the Book-Entry Termination Date,
Bonds shall be partially redeemed in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, in the event of a partial redemption of
a Bond, upon surrender of such Bond the principal corporate trust offices of the Registrar,
a new Bond or Bonds (at the option of the Owner) of the same maturity and interest rate
and in the aggregate principal amount remaining unredeemed shall be authenticated and
delivered to the Owner, without charge to the Owner therefor, in any denomination
authorized by this Ordinance and selected by the Owner.
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be
given, notice of a call for redemption of any Bonds to the Custodian, as the Owner
thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of
Representations. From and after the Book-Entry Termination Date, notice of any such
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For Discussion Purposes Only
intended redemption shall be given by or on behalf of the City not less than 30 nor more
than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to
the Owner of each Bond to be redeemed at the address appearing on the Bond Register on
the day the notice is given. The requirements of this section shall be deemed to be
complied with when notice is mailed as herein provided, whether or not it is actually
received by the Owner. In addition, such redemption notice shall be mailed within the
same time period, postage prepaid, to the Depositories, to each NRMSIR and to
or their successors, but such mailings shall not be a
condition precedent to the redemption of such Bonds.
If such notice to the Owners shall have been given and the City shall have set aside
sufficient money for the payment of all Bonds called for redemption on the date fixed for
redemption, the Bonds so called shall cease to accrue interest after such redemption date,
and all such Bonds shall be deemed not to be outstanding hereunder for any purpose,
except that the Owners of such Bonds shall be entitled to receive payment of the
redemption price and interest accrued on the principal of the Bonds to the redemption
date from the money set aside for such purpose.
The City reserves the right to purchase any or all of the Bonds on the open market
at any time and at any price.
All Bonds purchased or redeemed by the City shall be surrendered to the Registrar
for cancellation.
Section 5. Debt Limit Not Exceeded. The City finds and covenants that the
Bonds are issued within all constitutional and statutory debt limitations presently
applicable to the City.
For Discussion Purposes Only
Section 6. Pledge of Full Faith, Credit and Resources. The Bonds are limited tax
general obligations of the City. The City hereby irrevocably covenants to include in its
budgets and to make annual levies of taxes within the constitutional and statutory tax
limitations provided by law without a vote upon all property within the City subject to
taxation in amounts which, together with any other money legally available therefor, shall
be sufficient to pay the principal and interest on the Bonds as the same shall become due.
The City hereby irrevocably pledges its full faith, credit and resources to the annual levy
and collection of such taxes and for the prompt payment of such principal and interest.
Further, the City pledges to the payment of principal of and interest on the Bonds the
revenue generated by green fees paid at the Golf Complex, less operating and
maintenance expenses of the Golf Complex.
The City hereby irrevocably covenants that the annual tax provided for herein to
be levied for the payment of the principal of and interest on the Bonds shall be within and
as a part of the tax levy permitted the City without a vote of the people and that a
sufficient portion of each such annual tax levy to be made so long as the Bonds are
outstanding, together with any other money legally available therefor, shall be and is
hereby set aside, pledged and appropriated for the payment of the principal of and interest
on the Bonds as the same shall become due.
Section 7. Form of Bonds. The Bonds shall be typewritten, printed or
lithographed on good bond paper in a form consistent with this ordinance and
Washington law.
For Discussion Purposes Only
Section 8. Execution of Bonds. The Bonds shall be signed on behalf of the City
with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have
the seal of the City impressed or a facsimile thereof imprinted thereon.
In case either or both of the officers who shall have executed any Bond shall
cease to be such officer or officers of the City before the Bond so signed shall have been
authenticated or delivered by the Registrar or issued by the City, such Bond nevertheless
may be authenticated, delivered and issued and upon such authentication, delivery and
issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond also may be signed and attested on
behalf of the City by such persons as at the actual date of execution of such Bond shall be
the proper officers of the City although at the original date of such Bond such persons
were not such officers of the City.
Section 9. Authentication and Delivery_ of Bonds by Registrar. The Registrar is
authorized and directed, on behalf of the City, to authenticate and deliver Bonds initially
issued or transferred or exchanged in accordance with the provisions of such Bonds and
this Ordinance.
Only such Bonds as shall bear thereon a "Certificate of Authentication" manually
executed by an authorized signatory of the Registrar shall be valid or obligatory for any
purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication
shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this Ordinance.
The Registrar shall be responsible for its representations contained in the
Certificate of Authentication on the Bonds.
For Discussion Purposes Only
Section 10. Registration; Transfer and Exchange. The Registrar shall keep, or
cause to be kept, the Bond Register at its principal corporate trust office.
The City and the Registrar, each in its discretion, may deem and treat the Owner
of each Bond as the absolute owner thereof for all purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall
be made only as described in Section 3 hereof, but such registration may be transferred as
herein provided. All such payments made as provided in Section 3 hereof shall be valid
and shall satisfy and discharge the liability of the City upon such Bond to the extent of
the amount or amounts so paid.
The registered ownership of any Bond may be transferred. Prior to the Book-
Entry Termination Date, the beneficial ownership of the Bonds may only be transferred
on the records established and maintained by the Custodian. On and after the Book-Entry
Termination Date, no transfer of any Bond shall be valid unless it is surrendered at any
principal corporate trust office of the Registrar, with the assignment form appearing on
such Bond duly executed by the Owner or such Owner's duly authorized agent, in a
manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the
surrendered Bond and shall authenticate and deliver, without charge to the Owner or
transferee therefor (other than any governmental fees or taxes payable on account of such
transfer), a new Bond or Bonds (at the option of the new Owner), of the same maturity
and interest rate and for the same aggregate principal amount, in any authorized
denomination, naming as Owner the person or persons listed as the assignee on the
assignment form appearing on the surrendered Bond, in exchange for such surrendered
and cancelled Bond.
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For Discussion PurPoses Only
On and after the Book-Entry Termination Date, any Bond may be surrendered at
the principal corporate trust office of the Registrar and exchanged, without charge, for an
equal aggregate principal amount of Bonds, in any authorized denomination. The
Registrar shall not be obligated to transfer or exchange any Bond during the 15 days
preceding an interest or principal payment or redemption date.
The Registrar may become the Owner of any Bond with the same rights it would
have if it were not a Registrar and, to the extent permitted by law, may act as depository
for and permit any of its officers or directors to act as a member of, or in any other
capacity with respect to, any committee formed to protect the rights of the Owners of the
Bonds.
The City covenants that, until all Bonds shall have been surrendered and
cancelled, it will maintain a system of recording the ownership of each Bond that
complies with the provisions of the Code.
Section 11. Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond becomes
mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new
Bond of the same maturity and interest rate and of like tenor and effect in substitution
therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Bond has
matured, the City at its option, may pay the same without the surrender thereof.
However, no such substitution or payment shall be made unless and until the applicant
shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the
original BOnd and of the ownership thereof, and (b) such additional security, indemnity
or evidence as may be required by or on behalf of the City. No substitute Bond shall be
furnished unless the applicant shall reimburse the City and the Registrar for their
13
For Discussion Purposes Only
respective expenses in the furnishing thereof. Any such substitute Bond so furnished
shall be equally and proportionately entitled to the security of this Ordinance with all
other Bonds issued hereunder.
Section 12. Defeasance. If money and/or "Government Obligations" (as such
obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter
amended) maturing at such times(s) and beating such interest to be earned thereon
(without any reinvestment thereof) as will provide a series of payments which shall be
sufficient, together with any money initially deposited, to provide for the payment of the
principal of and interest on all or a portion of the Bonds, when due in accordance with
their terms in accordance with a refunding plan adopted by the City, are set aside in a
special fund (hereinafter called the '~trust account") to effect such payment and are
pledged irrevocably for the purpose of effecting such payment, then no further payments
need be made into the Bond Account for the payment of the principal of and the interest
on such Bonds, the Owners thereof shall cease to be entitled to any lien, benefit or
security of this Ordinance except for the fight to receive the money and the principal and
interest proceeds on the obligations set aside in the trust account, and such Bonds shall no
longer be deemed to be outstanding hereunder.
14
For Discussion Purposes Only
Section 13. Sale of the Bonds. The Purchaser has presented the Purchase
Agreement to the City pursuant to which the Purchaser has offered to purchase the
Bonds, under the terms and conditions provided in the Purchase Agreement, which
written Purchase Agreement is on file with the City Clerk and is incorporated herein by
this reference. The City Council finds that entering into the Purchase Agreement is in the
City's best interest and therefore accepts the offer contained in the Purchase Agreement
and authorizes the execution of the Purchase Agreement by City officials.
The Bonds will be prepared at City expense and will be delivered to the Purchaser
in accordance with the terms of the Purchase Agreement with the approving legal opinion
of the City's bond counsel relative to the issuance of the Bonds printed on each Bond or
attached thereto. Bond counsel has not been engaged to participate in the preparation or
review of, or express any opinion concerning the completeness or accuracy of the official
statement or other disclosure documentation used in connection with the offer or sale of
the Bonds by any person, and bond counsel's opinion shall so state. Bond counsel has
not been retained to monitor, and shall not be responsible for monitoring, the City's
compliance with any federal law or regulations to maintain the tax-exempt status of the
interest on the Bonds.
Section 14. Delivery. of Bonds; Temporary_ Bonds. The proper City officials,
including the City Treasurer, are authorized and directed to execute and/or approve, as
appropriate, all documents, including but not limited to, the final Official Statement
pertaining to the Bonds, and to do everything necessary for the preparation and delivery
of a transcript of proceedings pertaining to the Bonds, and the printing, execution and
For Discussion Purposes Only
prompt delivery of the Bonds to the Purchaser and for the proper application and use of
the proceeds of the sale thereof.
If definitive Bonds are not ready for delivery by the date established for Closing,
the City Treasurer, upon the approval of the Purchaser, may cause to be issued and
delivered to the Purchaser one or more temporary Bonds with appropriate omissions,
changes and additions. Any temporary Bond or Bonds shall be entitled and subject to the
same benefits and provisions of this ordinance with respect to the payment, security and
obligation thereof as definitive Bonds authorized hereby. Such temporary Bond or Bonds
shall be exchangeable without cost to the Owners thereof for definitive Bonds when the
latter are ready for delivery.
Section 15. Establishment of Bond Account~ Application of Bond Proceeds.
There is hereby created and established in the office of the City Treasurer a special fund
to be designated as the "2001 Limited Tax General Obligation Bond Account" (the
"Bond Account"), to be created within the City's Gold Mountain Golf Course Fund (the
"Golf Course Fund")..
The accrued interest on the Bonds received by the City upon the sale of the
Bonds, if any, shall be deposited into the Bond Account and shall be applied to the
payment of interest coming due on the Bonds. All of the remaining net proceeds of the
Bonds shall be deposited by the City into the Golf Course Fund to pay the costs of the
Project, incidental costs thereto and costs of issuance of the Bonds.
Section 16. Tax-Exemption and Bank Qualification. The City covenants that it
will not take or permit to be taken on its behalf any action that would adversely affect the
exclusion of the interest on the Bonds from gross income for purposes of federal income
For Discussion Purposes Only
taxation, and will take or require to be taken such acts as may be permitted by
Washington law and as may from time to time be required under applicable law to
continue the exclusion of the interest on the Bonds from gross income for purposes of
federal income taxation. Without limiting the generality of the foregoing, the City will
not invest or make or permit any use of the proceeds of the Bonds or of its other money at
any time during the term of the Bonds which would cause the Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the Code.
The Bonds are intended to qualify for the $5,000,000 small governmental issuer
exception to the arbitrage rebate requirement, set forth in the Code. The City covenants
that, if the City issues more than $5 million in tax-exempt bonds in the calendar year
2001, it will calculate or cause to be calculated, and shall rebate to the United States, all
earnings from the investment of Bond proceeds that are in excess of the amount that
would have been earned had the yield on such investments been equal to the yield on the
Bonds, plus income derived from such excess earnings, to the extent and in the manner
required by Section 148 of the Code.
The City has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that the City is a bond issuer the arbitrage certifications of
which may not be relied upon.
The City will take no actions and will make no use of the proceeds of the Bonds
or any other funds held under this ordinance which would cause any Bond to be treated as
a "private activity bond" (as defined in Section 141 (b) of the Code) subject to treatment
under said Section 141(b) as an obligation not described in Section 103(a) of the Code,
unless the tax exemption thereof is not affected.
17
For Discussion Purposes Only
The City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265 of the Code (relating to the deduction by financial institutions of
the interest incurred to carry tax-exempt debt), and authorizes and directs the proper City
officials to execute and deliver all documents necessary to evidence such designation to
any and all interested parties. The City further covenants not to issue more than
$10,000,000 of such "qualified tax-exempt obligations" during 2001.
Section 21. Preliminary Official Statement Declaration. The City has been
provided with copies of the Preliminary Official Statement, prepared in connection with
the sale of the Bonds. For the sole purpose of the Purchaser's compliance with Securities
and Exchange Commission Rule 15 c2-12(b)(1), the City "deems final" the Preliminary
Official Statement, as of its date, except for the omission of information on offering
prices, interest rates, selling compensation, delivery dates, ratings, other terms of the
Bonds dependent on such matters.
Section 22. Undertaking to Provide Continuing Disclosure. This section
constitutes the City's written undertaking for the benefit of the Owners and the Beneficial
Owners of the Bonds required by subsection (d)(2)(ii) of the Rule.
The City hereby agrees to provide or cause to be provided to each then existing
NRMSIR and to the SID, if one is created, the following annual financial information and
operating data (collectively, the "Annual Financial Information") for each prior fiscal
year, commencing with the fiscal year ending December 31,2001, on or before the last
day of the ninth month following the end of such prior fiscal year:
(a) Annual financial statements prepared in accordance with the
generally accepted accounting principles applicable to governmental units, as such
18
For Discussion Purposes Only
principles may be changed from time to time and as permitted by state law; which
statements will not be audited, except that if and when audited financial statements are
otherwise prepared and available to the City, they will be provided (the "Annual
Financial Statements");
(b) Authorized, issued and outstanding balance of general obligations
bonds;
(c) The assessed valuation for the fiscal year
(d) The regular property tax levy rate and regular property tax levy
rate limit for the fiscal year; and
(e) A narrative explanation of the reasons for any amendments to this
Section 14 made during the previous fiscal year and the impact of such amendments on
the Annual Financial Information being provided.
In its provision of such Annual Financial Information, the City may cross-reference
to any "final official statement" (as defined in the Rule) available from the MSRB or any
other documents theretofore provided to each then existing NRMSIR or the SID, if one is
created.
The City further agrees to provide or cause to be provided, in a timely manner, to
the SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice
of any of the following events with respect to the Bonds, if material:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
19
For Discussion Purposes Only
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to
perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the
Bonds;
7. Modifications to rights of the Owners of the Bonds;
8. Optional redemptions of the Bonds;
9. Defeasances of the Bonds;
10. Release, substitution or sale of property securing repayment of the
Bonds; and
11. Rating changes.
After the issuance of the Bonds, so long as the interests of the Owners or Beneficial
Owners of the Bonds will not be materially impaired thereby, as determined by a party
unaffiliated with the City (including, without limitation, a trustee for the Owners,
nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorable "no-action letter" issued by the SEC, this Section 22 may
only be amended in connection with any change in legal requirements, change in law, or
change in the identity, nature or status of the obligated person, or type of business
conducted, and only in such a manner that the undertaking of the City, as so amended,
would have complied with the requirements of the Rule at the time of the primary
offering, after taking into account any amendments or interpretations of the Rule, as well
as any change in circumstances.
20
For Discussion Purposes Only
The City's obligations to provide Financial Information and notices of certain
events shall terminate without amendment upon the defeasance, prior redemption or
payment in full of all of the then outstanding Bonds. This Section 22 or any provision
hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized
bond counsel or other counsel familiar with the federal securities laws to the effect that
those portions of the Rule which require this Section 22 or any such provision are invalid,
have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies
and provides the S~), if any, and either the MSRB or each then existing NRMSIR with
copies of such opinion.
The right of each Owner and Beneficial Owner of Bonds to enforce the provisions
o£this Section 22 shall be limited to the right to obtain specific enforcement of the City's
obligations under this Section 22, and any failure by the City to comply with the
provisions of this undertaking shall not be a default with respect to the Bonds under this
Ordinance.
The City Treasurer is authorized and directed to take such further action on behalf
of the City as may be necessary, appropriate or convenient to carry out the requirements
of this Section 22.
Section 23. Contract; Severability. The covenants contained in this ordinance
shall constitute a contract between the City and the Owners of each and every Bond. The
City unconditionally covenants that it will keep and perform all of the covenants of the
Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall
be declared unconstitutional or invalid for any reason, such decision shall not affect the
validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance
For Discussion Purposes Only
and the Bonds shall be construed and enforced as if such unconstitutional or invalid
provision had not been contained herein.
Section 24. Effective Date. This Ordinance shall take effect and be in full force
ten days after passage and publication of an approved summary, consisting of the title.
APPROVED by the City Council of the City of Bremerton, Washington, this 14th
day of February, 2001.
PASSED by the City Council of the City of Bremerton, Washington, this 21st day
of February, 2001.
JOHN LAW, Council President
APPROVED this __ day of February, 2001.
LYNN HORTON, Mayor
ATTEST:
Kathleen McCluskey, City Clerk
APPROVED AS TO FORM:
By
Judith Andrews, Bond Counse-i-
PUBLISHED:
22
For Discussion Purposes Only
EFFECTIVE DATE:
ORDINANCE NO.
23
BankofAmerica ~_
Banc of America Securities LLC ~_~~.
Jane Towery
Principal
NW Public Finance
February 2 l, 2001
Honorable Mayor and City Council
City of Bremerton
239 4th Street
Bremerton, Washington 98337
RE: City of Bremerton, Washington
$3,100,000 Limited Tax General Obligation Bonds, 2001
Honorable Mayor and City Council:
Banc of America Securities LLC (the "Underwriter") offers to purchase from the City of
Bremerton (the "Issuer") all of the above-described Bonds (the "Bonds"), on the terms and based
upon the covenants, representations and warranties set forth below and in Appendix A, which is
incorporated into this agreement (the "Purchase Agreement") by reference. Appendix A contains
a brief description of the Bonds, including principal amounts, maturities, interest rates, purchase
price, and the proposed date and place of delivery and payment (the "Closing"). Other provisions
of this Purchase Agreement are as follows:
1. The Issuer hereby ratifies, approves and confirms the distribution of the Preliminary Official
Statement with respect to the Bonds, dated February 13, 2001 (together with the Appendices
thereto, any documents incorporated therein by reference, and any supplements or
amendment thereto, the "Preliminary Official Statement"), in connection with the public
offering and sale of the Bonds by the Underwriter prior to the availability of the Official
Statement, and deems such Preliminary Official Statement final as of its date for purposes of
paragraph (b)(1) of the United States Securities and Exchange Commission Rule 15c2-12
(the "Rule"), except for the omission of such information as may be permitted by the Rule.
2. The Issuer agrees to cooperate with the Underwriter to permit the Underwriter to deliver or
cause to be delivered, within seven business days after the Purchase Agreement and in
sufficient time to accompany any confirmation that requests payment from any customer of
the Underwriter, copies of a Final Official Statement (the "Final Official Statement") in
sufficient quantity to comply with paragraph (b)(4) of the Securities and Exchange
Commission ("SEC") Rule 15c2-12 and the rules of the Municipal Securities Rulemaking
Board ("MSRB').
3. Prior to the Closing, the Issuer will pass an ordinance authorizing the Bonds (the "Bond
Ordinance") with such changes as are requested by the Issuer and its counsel. The Issuer
authorizes the Underwriter to use these documents and the information contained in them in
connection with the public offering of the Bonds, and to use the Final Official Statement in
connection with the sale and delivery of the Bonds.
4. The Issuer, to the best of its knowledge, represents and covenants to the Underwriter that:
(A) It has, and will have at the Closing, the power and authority to enter into and perform
the Purchase Agreement, to pass the Bond Ordinance and to deliver and sell the Bonds
to the Underwriter;
Banc of America Securities LLC member NYSE/NASD/SIPC, is a subsidiary of Bank of America Corporation
800 Fifth Avenue, Floor 34, Post Office Box 34662, Seattle, Washington 98124
Telephone (206) 358-8991, Telefax (206) 358-8818, jane.d.towery@bankofamerica.com
The City of Bremerton
February 21,2001
Page 2
(B) The Purchase Agreement and the Bonds do not and will not conflict with, or constitute
or create a breach or default under, any existing law, regulation, order or agreement to
which the Issuer is subject;
(C) Other than the Bond Ordinance, no governmental approval or authorization is required
in connection with the sale of the Bonds to the Underwriter;
(D) The Preliminary Official Statement with corrections, if any, noted by the Issuer and its
counsel, which is "deemed final" as of its date and (except as to matters corrected or
added in the Final Official Statement including offering prices, interest rates, selling
compensation, delivery dates, and other information dependent on such matters) as of
this date, is accurate and complete in all material respects as of its date to the
knowledge and belief of the officers and employees of the Issuer responsible for its
review, after due review; and
(E) The Issuer will have made an undertaking to provide continuing disclosure to meet the
conditions of paragraph (d)(2) of the SEC Rule as required under paragraph (b)(5) of
the Rule as provided in the Bond Ordinance.
5. The Underwriter agrees to deliver three copies of the Final Official Statement to each of the
nationally recognized municipal securities information repositories on the business day on
which the Final Official Statement is available, and in any event no later than seven business
days after the date thereof.
6. The Underwriter shall have the right to cancel the Purchase Agreement by notifying the
Issuer of its election to do so if, after the execution of the Purchase Agreement and prior to
the Closing:
(A) A decision by a court of the United States or the United States Tax Court shall be
rendered, or a ruling or a regulation (final, temporary, or proposed) by or on behalf of
the Treasury Department of the United States, the Internal Revenue Service or other
governmental agency shall be issued and in the case of any such regulation, published
in the Federal Register, or legislation shall have been introduced in, enacted by or
favorably reported to either the House of Representatives or the Senate of the United
States with respect to federal taxation upon interest received on bonds of the type and
character of any of the Bonds which, in the reasonable judgment of the Underwriter,
materially adversely affects the marketability of the Bonds or their sale by the
Underwriter, at the contemplated public offering prices; or
(B) The United States shall have become engaged in hostilities which have resulted in
declaration of war or national emergency, or other national or international calamity or
other event shall have occurred or accelerated to such an extent as, in the reasonable
opinion of the Underwriter, to have a materially adverse affect on the marketability of
the Bonds; or
(C) There shall have occurred a general suspension of trading on the New York Stock
Exchange; or
The City of Bremerton
February 21,2001
Page 3
(D) A general banking moratorium shall have been declared by United States, New York
State or Washington State authorities; or legislation shall hereafter be enacted, or
actively considered for enactment, with an effective date prior to the date of the delivery
of the Bonds, or a decision by a court of the United States shall hereafter be rendered, or
a ruling or regulation by the Securities and Exchange Commission or other
governmental agency having jurisdiction on the subject matter shall hereafter be made,
the effect of which is that:
(i) The Bonds are not exempt from the registration, qualification or other
requirements of the Securities Act of 1933, as amended and as then in effect, or
the Securities Exchange Act of 1934, as amended and then in effect, or
(ii) The Bond Ordinance is not exempt from the registration, qualification or other
requirements of the Trust Indenture Act of 1939, as amended and as then in effect,
or
(E) A stop order, ruling or regulation by the Securities and Exchange Commission shall
hereafter be issued or made, the effect of which is that the issuance, offering or sale of
the Bonds, as contemplated herein or in the Final Official Statement, is in violation of
any provision of the Securities Act of 1933, as amended and as then in effect, and
which, in its reasonable judgment, adversely affects the marketability of the Bonds or
the market price thereof.
7. The Underwriter's obligations hereunder are also subject to the following conditions:
(A) At or prior to the Closing, the Issuer will deliver, make available to the Underwriter, or
have adopted:
(i) The Bonds, fully registered in book-entry form only in the name of Cede & Co.,
as bond owner and nominee for The Depository Trust Company;
(ii) A certificate from an authorized officer of the Issuer, in form and substance
acceptable to the Issuer and the Underwriter, stating that (a) execution of the
Certificate shall constitute execution of the Final Official Statement by the Issuer;
(b) the Final Official Statement, to the knowledge and belief of such officer, after
due review, as of its date, did not, and as of the date of Closing, does not contain
any untrue statement of a material fact or omit any statement or information which
is necessary to make the statements therein, in the light of the circumstances under
which made, not misleading; (c) the representations of the Issuer contained in the
Purchase Agreement were true and correct when made and are true and correct as
of the Closing; and (d) there has not been any material adverse change in the
normal operations or financial condition of the City, nor to the best of the City's
knowledge, to the general economy of the City since the date of the Preliminary
Official Statement, except as disclosed in the Final Official Statement or any
supplement thereto;
(iii) The approving opinion of Bond Counsel (defined in Appendix A) dated the date
of Closing, substantially in the form attached to the Official Statement;
The City of Bremerton
February 21, 2001
Page 4
(B) The Underwriter's obligations are subject to the issuance of a municipal bond insurance
policy on the Bonds by MBIA Insurance Corporation, assignment to the Bonds of a
rating of "Aaa" by Moody's Investors Service, and the assignment to the Bonds of an
underlying rating of A3 by Moody's Investors Service;
(C) The following documents executed by an authorized officer of the Issuer:
(i) A certificate, dated the day of the Closing to the effect that no litigation or other
proceedings are pending or threatened in any way affecting the issuance, sale or
delivery of, or security for, any of the Bonds or the collection or application of
the taxes to be used for the payment of principal and interest on the Bonds.
(ii) A certificate setting forth the facts, estimates and circumstances in existence on
the date of Closing which establish that it is not expected that the proceeds of
the Bonds will be used in a manner that could cause the Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the Internal Revenue Code and
any applicable regulations thereunder.
(iii) Such additional certificates, instruments or opinions or other evidence as the
Underwriter may deem reasonably necessary or desirable to evidence the due
authorization, execution, authentication and delivery of the Bonds, the truth and
accuracy as of the time of the Closing of the Issuer's representations and
warranties in this Purchase Agreement, and the conformity of the Bonds and
Bond Ordinance with the terms thereof as summarized in the Official
Statement, and to cover such other matters as it reasonably requests.
(iv) A certified copy of the Bond Ordinance.
8. The Issuer will pay the cost of preparing, printing and executing the Bonds, the fees and
disbursements of Bond Counsel and bond registration costs, bond insurance premium and
rating fees and expenses, travel and lodging expenses of the Issuer's employees, and any
other expenses of the Issuer.
The Underwriter will pay the Underwriter's travel expenses, and any other expenses of the
Underwriter. As a convenience to the Issuer, the Underwriter may from time to time, as
Underwriter, make arrangements for certain items for which Issuer is responsible hereunder,
such as printing of the Preliminary and Final Official Statements.
The Underwriter also may advance for the Issuer's account, when approved or authorized by
the Issuer the cost of the items for which Issuer is responsible by making payments to third-
party vendors. In such cases, the Issuer shall pay such costs or expenses directly, upon
submission of appropriate invoices by Underwriter, or promptly reimburse the Underwriter in
the event the Underwriter has advanced such costs or expenses for Issuer's account. It is
understood that the Issuer shall be primarily responsible for payment of all such items and
that the Underwriter may agree to advance the cost of such items from time to time solely as
an accommodation to the Issuer and on the condition that it shall be reimbursed in full by the
Issuer.
The City of Bremerton
February 21,2001
Page 5
9. This Purchase Agreement is intended to benefit only the parties hereto, and Issuer's
representations and warranties shall survive the delivery and payment for the Bonds and the
termination of this Purchase Agreement. Should the Issuer fail to satisfy any of the foregoing
conditions or covenants, or if the Underwriter's obligations are terminated for any reasons
permitted under the Purchase Agreement, then neither the Underwriter nor the Issuer shall
have any further obligations under this Purchase Agreement, except that any expenses
incurred shall be borne in accordance with Section 8 hereof.
10. This offer expires on the date, and at the time, set forth on Appendix A.
Respectfully submitted,
Banc of America Securities LLC
By: Ja?e/'Towery -
lXrfncipal
Accepted February 21,2001
City of Bremerton
By:
Its:
APPENDIX A
DESCRIPTION OF BONDS
(a) Purchase Price: $3,075,884.20 ($99.222071 per $100), plus accrued interest from the dated date to the date
of Closing
(b) Dated Date: March 1,2001
(c) Par: $ 3,100,000
(d) Denominations: $5,000, or integral multiples thereof
(e) Form: Book-entry only
(0 Interest Payment Dates: December 1 and June 1, commencing June 1, 2001
(g) Maturity Schedule: Bonds shall mature on December 1 of each year and bear interest as follows:
Due Yield Due Yield
December 1 Amount Rate or Price December I Amount Rate or Price
2001 75,000 4.125% 3.350% 2011 155,000 4.400% 4.450%
2002 105,000 4.125% 3.400% 2012 160,000 4.550% 4.600%
2003 110,000 4.125% 3.650% 2013 170,000 4.650% 4.700%
2004 115,000 4.125% 3.750% 2014 175,000 4.750% 4.800%
2005 120,000 4.125% 3.850% 2015 185,000 4.850% 4.900%
2006 125,000 4.125% 3.950% 2016 190,000 4.900% 4.950%
2007 130,000 4.125% 4.050% 2017 200,000 4.950% 4.970%
2008 135,000 4.200% 4.200% 2018 210,000 5.000% 5.030%
2009 140,000 4.300% 4.300% 2019 220,000 5.050% 5.070%
2010 145,000 4.400% 4.400% 2020 235,000 5.100% 5.120%
(h) Optional Redemption: The Bonds maturing on and after December 1, 2012, are subject to redemption at the
option of the Issuer on and after December 1, 2011, in whole or in part on any date (maturities to be selected
by the Issuer and by lot within a maturity in such manner as the Registrar shall determine) at a price of par
plus accrued interest, if any, to the date fixed for redemption.
(i) Closing Date: March 12, 2001
{j) Offer Expires: 11:59 p.m. February 21,2001
(k) Bond Counsel: Gottlieb, Fisher & Andrews PLLC
For Information Purposes Only:
Gross Interest Cost $ 1,738,481.28
Plus: Net Original Issue Premium 64.20
Plus: Underwriter's Discount 24,180.00
Net Interest Cost $ 1,762,597.08
Net Interest Cost (%) 4.827710%
OFFtCIAL STATEMENT DA TED FEBRUARY 28, 2001
BOOK-ENTRY ONLY
NEW ISSUE MOODY'S RATING: Aaa
NEGOTIATED (See the captions "MUNICIPAL BOND INSURANCE" and "RATING" herein.)
MBIA Insured
In the opinion of Bond Counsel, as of the Date of issue, and assuming the City fulfills its covenant to comply with certain requirements of the Internal Revenue Code
of 1986, as amended (the "Code") that must be met subsequent to the issuance of the Bonds: interest on the Bonds is excluded from gross income for federal
income tax purposes, and is not an item of tax preference for purposes of determining the alternative minimum tax on individuals and corporations; and the Bonds
are "qualified tax-exempt obligations" for purposes of the partial interest expense deduction available under Section 265 of the Code. However, interest on the
Bonds is included in the computation of other taxes, including without limitation the alternative minimum tax on corporations, and may be subject to other collateral
tax consequences. See '"TAX EXEMPTION" and "OTHER TAX CONSEQUENCES"herein.
CITY OF BREMERTON, WASHINGTON
$3,100,000
LIMITED TAX GENERAL OBLIGATION BONDS, 200'1
DATED: March 1, 2001 DUE: December 1, as shown below
The City's Limited Tax General Obligation Bonds, 2001 (the "Bonds"), are issued in fully registered form, and will be fully registered in the
name of Cede & Co., as Bondowner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as
securities depository for the Bonds. The Bonds will be initially issued in book-entry form on~y in the principal amount of $5,000 each or any
integral multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased.
The Bonds bear interest payable on June 1, 2001 and each December 1 and June 1 thereafter until matudty or prior redemption. The
principal of and interest on the Bonds are payable by the fiscal agency of the State of Washington, currently The Bank of New York, New
Ycrk, New York (the "Fiscal Agent" or "Registrar"). For so long as the Bonds remain in a "book-entr7 only" transfer system, the Fiscal Agent
will make such payments only to DTC, which will in turn remit such principal and interest to the DTC participants for subsequent disbursement
to Beneficial Owners of the Bonds as described in Appendix B "DTC AND BOOK-ENTRY SYSTEM" hereto.
MATU RIT~ SCHEDULE
Due Yield or Due Yield or
December 1 Amount Rate Price December 1 Amount Rate Price
2001 $ 75,000 4.125% 3.35 2011 $155,000 4.40% 4.45
2002 105,000 4.125 3.40 2012 160,000 4.55 4.60
2003 '~";' ' '" '~= - -"~ "~"':" .... "'" ~..-~5_, 4.70
2004 115,000 4.125 3.75 2014 175,000 4.75 4.80
2005 120,000 4.125 3.85 2015 185,000 4.85 4.90
2006 125,000 4.125 3.95 2016 190,000 4.90 4.95
2007 130,000 4.125 4.05 2017 200,000 4.95 4.97
2008 135,000 4.20 100 2018 210,000 5.00 5.03
2009 140,000 4.30 100 2019 220,000 5.05 5.07
2010 145,000 4.40 100 2020 235,000 5.10 5.12
(Plus accrued interest from March 1, 2001)
The Bonds matudng on or after December 1, 2012 are subject to redemption at the option of the City on or after December 1, 2011 as further
described herein under "DESCRIPTION OF THE BONDS - Optional Redemption.'
The Bonds are limited tax general obligations of the City, The City has irrevocably covenanted that, unless the principal of and interest on the
Bonds are paid from other sources, so long as the Bonds are outstanding, the City will include in its budgets and make annual levies of taxes
within the constitutional and statutory tax limitations provided by law without a vote of electors, upon all property within the City subject to
taxation in amounts sufficient, together with any other money legally available therefor, to pay the principal and interest on the Bonds as the
same shall become due. The City has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such taxes
and for the prompt payment of such principal and interest. See "DESCRIPTION OF THE BONDS - Security" herein.
The City has designated the Bonds as "qualified tax-exempt obligations" under the internal Revenue Code of 1986, as amended, for banks,
thrift institutions and other financial institutions. See '"TAX EXEMPTION" and "OTHER TAX CONSEQUENCES" herein.
The Bonds are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC,
Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Bonds. The Bonds in definitive book-entry form are
expected to be ready for delivery through the facilities of DTC in New York, New York, on or around March 12, 2001.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official
Statement to obtain information essential to making an informed investment decision.
Banc of America Securities LLC
Representations
The Underwriter has provided the following sentence for inclusion in this Official Statement. The
Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its
responsibilities to investors under the federal securities laws as applied to the facts and circumstances of
this transaction, but the Underwriter does not guarantee the accuracy or completeness of such
information.
The delivery of this Official Statement does not imply that the information contained herein is correct as
of any time subsequent to the date of the Official Statement as shown on the cover page. Neither the City
nor the Underwriter has authorized any dealer, broker, salesperson or other persons to give any
information or make any representations other than those made in this Official Statement, and, if given or
made, such other information or representations must not be relied upon as having been authorized by the
City or the Underwriter. This Official Statement does not constitute an offer to sell, nor shall there be any
sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such a
sale.
Disclosure Statement
The City will deliver to the Underwriter at the time of delivery of the Bonds a signed statement
substantially to the effect that this Official Statement, as of its date and as of the date of the Bonds,
neither contains any untrue statement of a mater/al fact nor omits to state any material fact necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading in
any material respect and, to its knowledge, that there has not been any material adverse change in the
normal operations or financial condition of the City nor, to the best of the City's kno~vledge, in the
general economy of the City since the date of the Preliminary Official Statement.
Secondary Market
It has been the practice of the Underwriter to maintain a secondary market in municipal bonds which it
sells. The Underwriter intends to engage in secondary market trading of the Bonds, subject to applicable
securities laws. The Underwriter, however, is neither obligated to engage in secondary trading nor to
repurchase any of the Bonds at the request of the registered owners thereof and no assurance can be given
that a secondary market for the Bonds will be available.
In connection with the offering of the Bonds, the Underwriter may over-allot or effect transactions that
stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in
the o?en market. Such stabilizing, if commenced, ma5, be discontinued at any' time.
ii
CITY OF BREMERTON
Kitsap County, Washington
239 Fourth Street
Bremerton, Washington 98337
(360) 478-5290
MAYOR
Term Expires
December 31
Lynn Horton 2001
CITY COUNCIL
John Law Chairperson 2001
· Wayne Olsen Member 2001
Carol Mends Member 2001
Mike Shepherd Member 2001
Cecil McConnell Member 2003
Conrad E:ser Member 2003
David Fan' Member 2003
Edward Rollman Member 2003
Jim Reed Member 2001
APPOINTED CITY OFFICIALS
Richard Hanna Treasurer
Kathleen McCluskey Administrative Services Director/City Clerk
BOND COUNSEL
Gottlieb, Fisher & Andrews, PLLC
Seattle, Washington
U N D ERWRITER
Banc of America Securities LLC
Seattle, Washington
111
TABLE OF CONTENTS
Page
Introduction .................................................................................................................................................. 1
Description of thc Bonds .............................................................................................................................. 1
Debt Payment Record ................................................................................................................................... 3
Future Financing ........................................................................................................................................... 3
Assessed Valuation Determination. .............................................................................................................. 3
Tax Collection Procedure ............................................................................................................................. 4
Authorization of Debt ................................................................................................................................... 4
General Obligation Indebtedness ................................................................................................................. 4
Limits on Amount of General Obligation Indebtedness ..... : ......................................................................... 4
Authorization of Short-Term Debt ............................................................................................................... 5
Taxing Powers and Limitations .................................................................................................................... 5
Initiative and Referendum ............................................................................................................................ 6
Authorized Investments ................................................................................................................................ 7
Net Direct Debt and Estimated Net Overlapping General Obligation Debt ................................................ 8
Bonded Debt Ratios of the City .................................................................................................................... 8
Statutory Debt Limit Calculation ........................................................................................................... , ..... 9
Ad Valorem Tax Record of the City .......................................................................................................... 10
Ad Valorem Property Tax Rates in the City .............................................................................................. 10
Major Property Taxpayers .......................................................................................................................... 10
Comparative Statement of' General Fund Revenues and Expenditures ...................................................... 11
Contingency Reserve Fund Year-End Balances ....................................................................................... 11
General Fund Budget for 2000 and 2001 ................................................................................................... 12
Schedule of General Obligation Bond Debt Service for the City ............................................................... 13
City Profile ................................................................................................................................................. 13
General and Economic Information ........................................................................................................... 14
Original Issue Discount .............................................................................................................................. 18
Original Issue Premium .............................................................................................................................. 18
Preservation of Tax Exemption .................................................................................................................. 18
Conflicts of Interest .................................................................................. : ................................................. 19
Tax Exemption ........................................................................................................................................... 19
Other Tax Consequences ............................................................................................................................ 19
Absence of Material Litigation ................................................................................................................... 20
Approval of Bond Counsel ......................................................................................................................... 20
Continuing Disclosure ................................................................................................................................ 20
Municipal Bond Insurance ......................................................................................................................... 21
Rating ......................................................................................................................................................... 23
Underwriting .............................................................................................................................................. 23
Concluding Statement ................................................................................................................................ 23
Form of Legal Opinion ................................................................................................................ Appendix A
DTC and Book-Entry System ...................................................................................................... Appendix B
Municipal Bond Insurance Policy Specimen .............................................................................. Appendix C
iv
OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$3,100,000
LIMITED TAX GENERAL OBLIGATION BONDS, 2001
INTRODUCTION
The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and existing under and
by virtue of the laws of the State of Washington ("the State"), furnishes this Official Statement in connection with
the offering of $3,100,000 principal amount of Limited Tax General Obligation Bonds, 2001 (the "Bonds"). This
Official Statement provides information concerning the City and the Bonds.
DESCRIPTION OF THE BONDS
Principal Amounts, Date, Interest Rates, and Maturities
The Bonds will be issued in the principal amount of $3,100,000 and will be dated and bear interest from March 1,
2001 until their stated maturity or prior redemption. The Bonds will mature annually on December 1,
commencing December 1, 2001, in the amounts and will bear interest payable semi-annually, on each June 1 and
December 1, commencing June 1, 2001, at the rates set forth on the cover page of this Official Statement.
Interest on the Bonds will be computed on the basis of a 360-day year of twelve 30-day months.
Early Redemption and Open Market Purchase
The Bonds maturing in years 2001 through 2011, inclusive, are not subject to redemption prior to maturity. The
Bonds maturing on or after December 1, 2012 are subject to redemption prior to maturity at the option of the City
on or after December 1, 2011 in whole or in part on any date (maturities to be selected by the City and by lot
within a maturity in such a manner as the Registrar shall determine) at a price of par, plus accrued interest to the
date fixed for redemption.
Any Bond in the principal amount of greater than $5,000 may be partially redeemed in any integral multiple of
$5,000. So long as Cede & Co. is the registered owner of the Bonds, Bonds shall be partially redeemed in
accordance with the Letter of Representations. In the event of a partial redemption of a Bond when the Bonds are
not subject to the book-entry only system, upon surrender of such Bond at the principal corporate trust office of
the Registrar, a new Bond or Bonds (at the option of the Owner) of the same maturity and interest rate and in the
aggregate principal amount remaining unredeemed shall be authenticated and delivered to the Owner, without
charge to the Owner therefor, in any denomination authorized by the Ordinance and selected by the Owner.
The City reserves the right and option to purchase any or all of the Bonds in the open market at any time at any
price.
Notice of Redemption
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be given, notice of a call for
redemption of any Bonds to the Custodian, as the Owner thereof, for the benefit of the Beneficial Owners thereof,
in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, notice of any
such intended redemption shall be given by or on behalf of the City not less than 30 nor more than 60 days prior
to the date fixed for redemption by first-class mail, postage prepaid, to the Owner of each Bond to be redeemed at
the address appearing on the Bond Register on the day the notice is given. These requirements shall be deemed to
be complied with when notice is mailed as described above, whether or not it is actually received by the Owner.
Paying Agent
Principal of and interest on the Bonds will be payable by the State fiscal agency (the "Fiscal Agent" or
"Registrar") in New York, New York, or Seattle, Washington, currently The Bank of New York (or such other
fiscal agency or agencies-as the City Treasurer may from time to time designate). So long as Cede & Co. is the
registered owner of the Bonds, principal of and interest on the Bonds are payable by wire transfer by the Registrar
to DTC, which, in mm, is obligated to remit such principal and interest to the DTC Participants for subsequent
disbursement to the Beneficial Owners of the Bonds, as thrther described in APPENDIX B - "DTC AND BOOK
ENTRY SYSTEM" hereto.
Form, Denomination and Registrar
The Bonds will be issued in fully registered form as to both principal and interest in the denomination of $5,000
or any integral multiple thereof within a single maturity. The Bonds, when issued, will be registered in the name
of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York
("DTC").
Book-Entry Transfer System
DTC will act as securities depository for the Bonds. Individual purchases may be made in book-entry form only.
Purchasers will not receive certificates representing their interest in the Bonds purchased. So long as Cede & Co.
is the registered owner of the Bonds, as nominee of DTC, references herein to the registered owners or Bond
owners will mean Cede & Co. and will not mean the "Beneficial Owners" of the Bonds. In this Official
Statement, the term "Beneficial Owner" will mean the person for whom a DTC participant acquires an interest in
the Bonds. See APPENDIX B - "DTC AND BOOK ENTRY SYSTEM" hereto.
Termination of BooR-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in the best interest
of the City not to continue the book-entry system of transfer or that interests of the Beneficial Owners of the
Bonds might be adversely affected if the book-entry system of transfer is continued, the City will execute,
authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully
registered form, in the denomination of $5,000 or any integral multiple thereof within a single maturity.
Thereafter, interest on the Bonds shall be paid by check or draft mailed on or before the interest payment date, to
the persons identified as the Owners on the fifteenth day of the month preceding the interest payment date at the
addresses shown for the Owners on the Bond Register. Principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners at the principal corporate trust office of the Registrar.
Authorization
The Bonds are issued in accordance with the provisions of the Constitution and applicable statutes of the State of
Washington, pursuant to Ordinance No. __ (the "Ordinance") of the City Council, adopted on February 21,
2001.
Security
The Bonds are limited tax general obligations of the City. Unless the principal of and interest on the Bonds are
paid from other sources, so long as the Bonds are outstanding, the City has irrevocably covenanted in the
Ordinance to include in its budgets and to make annual levies of taxes within the constitutional and statutory tax
limitations provided by law without a vote upon all property within the City subject to taxation in amounts which,
together with any other money legally available therefor, shall be sufficient to pay the principal and interest on the
Bonds as the same shall become due. The City has irrevocably pledged its full faith, credit and resources to the
annual levy and collection of such taxes and for the prompt payment of such principal and interest. Further, the
City has pledged to the payment of the principal and interest on the Bonds the revenue generated by the green
fees paid at the Gold Mountain Golf Complex, less operating and maintenance expenses of the Complex.
The City has irrevocably covenanted that the annual tax to be levied for the payment of the principal of and
interest on the Bonds shall be within and as a part of the tax levy permitted the City without a vote of the people
and that a sufficient portion of each such annual tax levy to be made so long as the Bonds are outstanding,
together with any other money legally available therefor, shall be set aside, pledged and appropriated for the
payment of the principal of and interest on the Bonds as the same shall become due.
2
Purpose
The proceeds of the Bond.~ will be used to design, construct and furnish a new clubhouse at the City's Gold
Mountain Golf Complex.
Gold Mountain Golf Complex
Located ~'.~!:t miles from downtown Bremerton on a portion of the City's 8,500-acre watershed, the City's Gold
Mountain Golf Complex (the "Complex") is operated as an enterprise fund of the City.
The original course, built in 1972 and now named the Cascade Course, has been rated as one of the top public
courses in the State of Washington by Pacific Northwest Golf magazine (1994 issue).
The new course, named the Olympic Course, was designed by architect John Harbottle and opened for play in the
fall of 1996. The Olympic Course has received very positive reviews from both regional and national golf
industry publications, including being named one of the top ten new public courses in the nation by Golf
Magazine in February 1997 and as the second best new public course in the nation by Golf Digest in December of
1997.
The Complex is operated by the City as an enterprise with the objective of making a profit and simultaneously
meeting as many of the golfing community's needs as possible. The profit made is used to fund improvements to
the golf complex as well as other park and recreation facilities within the City. Since 1984, the City has
contracted the management and operation of the golf complex to a private contractor.
It is the City's expectation that revenues from the operation of the Complex will be used to pay the debt service
requirements of the Bonds, and a portion of the revenue has been pledged to the payment of the Bonds. See
"DESCRIPTION OF THE BONDS - Security" herein.
Failure to Pay the Bonds at Maturity
If any Bond is not paid upon proper presentment at its maturity, the City is obligated to pay interest on that Bond
at the same rate provided in the Bond from and after such maturity date until such Bond, both principal and
interest, is paid in full.
DEBT PAYM.'=N7 R2CORD
The City has always promptly met principal and interest payments on outstanding obligations when due.
Additionally, no refunding bonds have been issued for the purpose of preventing an impending default.
FUTURE FINANCING
No additional long-term debt is expected to be issued by the City within the next 12 months.
ASSESSED VALUATION DETERMINATION
In the State, the County Assessor (the "Assessor") determines the value of all real and personal property
throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's duties and
methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by
the Department of Revenue of the State of Washington. For tax purposes the assessed value of property is set at
100% of its actual value. Property in Kitsap County is revalued annually based on market sales and receives an
on-site appraisal every six years. The property is listed by the Assessor on a tax roll at its current assessed value
and the tax roll is filed in the Assessor's office.
The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain
property, subject to further revision by the State Board of Equalization. After all administrative procedures are
completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing
unit.
3
TAX COLLECTION PROCEDURE
Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing cities in the County
(including the City) are d.etermined, calculated and fixed by the Assessor based upon the assessed valuation of the
property within the various taxing cities. The Assessor extends the taxes to be levied within each taxing City upon
a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax account number
to each tax lot. The tax roll is delivered to the Kitsap County Treasurer by January 15 of each year, and an
abstract of the tax roll, showing the total amount of taxes collectible in each of the taxing cities for the year, is
delivered to the Board of County Commissioners at the same time. All taxes are due and payable on the 30th of
April of each year, but if the amount due from a taxpayer exceeds $30.00, one-half may be paid then and the
balance no later than October 31 of each year.
The method of giving notice of payment of taxes due, accounting for the money collected, the division of the
taxes among the various taxing cities, giving notice of delinquency, and collection procedure are all covered by
detailed statutes. The lien for ad valorem property taxes which have been levied prior to the filing of federal tax
liens is prior to such federal tax liens.
In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent property taxes is
prior to all other liens or encumbrances of any kind on real or personal property subject to taxation. By law
(chapter 6.13 RCW) the taxing unit may commence foreclosure of a tax lien on real property after three years
have passed since the first delinquency. Washington State's courts have not decided whether the Homestead
Exemption may give the occupying home owner a right in the forced sale of the family residence for delinquent
general property taxes to retain the first $40,000 of proceeds of the sate. (SeeAlgona vs. Sharp, 30 Wn. App. 837,
638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district assessments).
AUTHORIZATION OF DEBT
The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be set
forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The
budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur
liabilities in excess of budgetary appropriations.
GENERAL OBLIGATION INDEBTEDNESS
Under the Constitution and statutes of the State, the City may incur two types of general obligation indebtedness,
differentiated by the limits on the real and personal property taxes which may be collected for the payment
thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property in the City which
may be imposed by the City within the limitations prescribed by State statute without a vote of the people
(sometimes referred to as "non-voted debt" or "non-voted bonds," or "councilmanic bonds" or "limited tax
bonds"). The statutory limits on the levy of such taxes are described in the section herein entitled "LIMITS ON
AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or amount,
imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by
60% of the City voters at an election in which the total vote cast exceeds 40% of the votes cast at the last
preceding general election of the City or State. Such unlimited tax indebtedness is sometimes referred to as
"voted debt," "voted bonds" or "unlimited tax bonds."
Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without voter
approval.
LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS
State statutes limit the total principal amount of all City general obligation indebtedness incurred for "general"
purposes, for both limited tax and unlimited tax, to 2.5% of the actual value of taxable property within the City.
Within this 2.5% limitation, non-voted indebtedness is further limited to 1.5% of the value of such taxable
property.
4
The City is additionally authorized to incur general obligation indebtedness for the following "special" purposes,
with voter approval, in the total principal amount of up to the following percentages of the actual value of taxable
property within the City: water, artificial light and sewers, 25°/< ~'r, en sence 2~ oark faci!;ties, 2.5%: ~.-_d capital
thcilities associated with economic development, 2.5%. T~:c :_~:: .~:aSc:~ ~' ~:::i~z~ited tax and iimited ~ax general
obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation.
The State statutory limits on City general obligation indebtedness described in this section are more restrictive
than those contained in the State Constitution. Both the Constitutional and statutory debt limits may be exceeded
if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate existence
of the City.
In computing total general obligation indebtedness, the following "assets" may be deducted against the principal
amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement
funds: (b) taxes (both current and delinquent) levied for the payment of general Obligation indebtedness; and (c)
delinquent (but not current) taxes due the general fund.
In addition to limits on the total principal amount of general obligation indebtedness described in this section, the
Constitution and statutes of the State impose other limitations on the City's levy of taxes upon real and persona[
property (see section herein entitled "TAXING POWERS AND LIMITATIONS".)
AUTHORIZATION OF SHORT-TERM DEBT
As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue short-term
obligations, the proceeds of which may be used for any lawful purpose. Short-term obligations may be issued in
anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general obligation bonds if the bonds may
be issued without the consent of the voters or if previously ratified by the voters: (2) revenue bonds if the bonds
have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have been
authorized by ordinance or resolution. These short-term obligations shall be repaid out of money derived from the
source or sources in anticipation of which they were issued or from any money legally available for this purpose.
Additionally, the City may incur short-term indebtedness in the following ways: first, in an emergency, the
Council members may put a plan into effect and authorize indebtedness outside the current budget. All
expenditures for emergency purpose shall be paid by warrants from any available money in the fund properly
chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become
registered interest-bearing warrants. In adopting the budget for any fiscal year, the Council members shall
appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding
budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if
the total contract amount, together with the other non-voted general obligation indebtedness of the City, does not
exceed 3/4 of 1% of the value of taxable property in the City; any item so purchased must be budgeted for
payment in accordance with the terms of the contract.
TAXING POWERS AND LIMITATIONS
Pursuant to chapter 84.52.043 RCW, cities may levy, without a vote of the residents residing therein, a maximum
of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time firemen, such as the
City, may levy an additional $.225 per thousand to fund the city's Fireman's Pension Fund (chapter 41.16.060
RCW), thus creating a maximum annual levy rate of $3.60 per thousand. The City is currently levying $3.325 per
thousand dollars of taxable assessed valuation for its regular levy.
According to RCW 27.12.390, any city or town annexed to a rural library district, island library district, or inter-
county rural library district, such as the City, shall be entitled to levy up to $3.60 per thousand dollars of assessed
valuation less any regular levy made by such library district in the incorporated area, notwithstanding any other
provision of law.
A city's regular property taxes are subject to the provisions of a state statute limiting the growth of annual
property taxes (RCW 84.55.010). The limitation, which was amended by the Property Tax Act (enacted as Senate
Bill 5835 by the Washington Legislature in 1997 and adopted and ratified by voters at the November 1997
general election) provides that the regular property taxes payable in the following year shall not exceed the
amount of the single highest regular levy amount lawfully levied by the municipal entity in the three immediately
preceding calendar years multiplied by a limit factor, plus an additional amount due to the incremental assessed
valuation increase in the municipal entity caused by new construction and property improvements. The limit
5
factor is defined in the Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) any amount up to
106% if approved by a majority plus one vote of the governing body of the municipality upon a finding of
substantial need. The regular property taxes levied by a city may be increased above the limit factor upon the
affirmative vote of a majority of the voters residing in the municipal entity at an election held tbr such purposes
(RCW 84.55.050).
INITIATIVE AND REFERENDUM
Under the State Constitution, the voters of the State have the ability to initiate legislation and modify existing
legislation through the powers of initiative and referendum, respectively. The initiative power in Washington
may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon
receipt of a petition signed by at least 8% (initiative) and 4% (referenda) of the number of voters registered and
voting for the office of Governor at the preceding regular gubernatorial election. Any law approved in this
manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two
years following enactment, except by a vote of two-thirds of all the members elected to each house of the
Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as
other laws.
Initiative 695
Washington State Initiative Measure No. 695 ("I-695"), requiring voter approval for any increase in taxes, impact
fees, permit fees, or any governmental "monetary charge," was appi-oved by voters on November 2, 1999. Many
aspects of 1-695 were challenged in court. On October 26, 2000, the Washington Supreme Court declared 1-695
unconstitutional in its entirety.
Initiative 722
On November 7, 2000, the State's voters approved Initiative No. 722 ("1-722"). 1-722 provides that any "tax"
increase adopted by the State or any local government from July 2, 1999 (the date on which 1-695 first qualified
for the ballot) through December 31, 1999 (the last day before the effective date of 1-695) is null ahd void and
must be refunded to the taxpayers. "Tax" is defined in 1-722 to include, but is not limited to, water, sewer and
utility charges, sales and use taxes, property taxes, business and occupation taxes, impact, license and permit fees,
and any monetary charge by government. 1-722 purports to exempt persons from paying the portion of property
taxes attributable to any increase in value of property (other than for new construction or manufacture) over its
1999 valuation level, plus the lesser of 2% per year or the annual inflation rate (whichever is less). The measure
also reduces the limit on the total dollar amount of regular property taxes that may be levied annually by a taxing
district, without a vote of its electors, from 106% to 102% of the highest levy in the three previous years. Further,
it eliminates a statutory provision that allowed taxing districts to forego non-voted tax increases in any year, yet
when levying taxes in future years to calculate the allowable tax level on a base that included the years in which
no tax increase was actually imposed.
The City. implemented several tax and fee increases during the period between July 2 and December 31, 1999
including changes to the greens fees charged at the golf complex and its property taxes for calendar year 2000.
All of these tax and fee increases were reauthorized by the City Council in December of 2000, prior to the
effective date of Initiative 722.
Several Washington municipalities, taxpayers and social service providers have recently filed lawsuits
challenging various aspects of 1-722, including its overall constitutionality, whether a refund of a "tax" that was
properly imposed constitutes an unconstitutional gift of public funds and whether a refund unlawfully affects
certain municipalities' ability to comply with their contractual obligations. The City is unable to predict the
outcome of these lawsuits.
Future Initiative Legislation
Other tax and fee initiative measures may be filed, but it cannot be predicted whether any such initiatives might
gain sufficient signatures to qualify for submission to the Legislature and/or the voters, or, if submitted, ultimately
be approved.
AUTHORIZED INVESTMENTS
Chapter 39.59 RCW limits the investment of public funds to the following authorized investments: bonds of the
State and any local government in the State, which bonds are rated at the time of investment in one of the three
highest credit ratings by a nationally recognized rating agency; general obligation bonds of other states and
subdivisions thereof so long as those bonds are rated in one of the three highest categories; registered warrants of
a local government within the same county as the entity making the investment; and any investment authorized by
law for the treasurer of the State or any local government exclusive of certificates of deposit of banks or bank
branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable
certificates of deposit in designated qualified public depositories; in obligations of the U.S. government, its
agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in repurchase
agreements; in the obligations of the federal home loan bank, federal national mortgage association and other
government corporations subject to statutory provisions. Utility revenue bonds and warrants of any city and
bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not required for immediate
expenditure by the County Treasurer. Such funds of the City, including debt service funds, may be invested by
the County Treasurer. The County Treasurer may, upon the request of one or more units of local government that
invest their money with the County, combine that money for the purposes of investment (RCW 36.29.022). The
office of the County Treasurer receives up to five percent of the earnings on such investments, subject to a
maximum of $50 on each transaction, as its investment service fee. The County Treasurer may reimburse its
office for any expenses incurred in the establishment and maintenance of such a County investment pool (RCW
36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP"),
a $3.5 billion fund that invests money on behalf of more than 350 cities, counties and special taxing districts. In
its management of LGIP, the State Treasury adheres, at all times, to the principles appropriate for the prudent
investment of public funds. These are, in priority order, ii) the safety of principal; (ii) the assurance of sufficient
liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first
two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands.
T':..e LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants the opportunity to
benefit rrorn the economies of scale inherent in pooling. It is also intended to offer participants increased safety of
principal and the ability to achieve a higher investment yield than would otherwise be available to them. The
LGIP is a conservatively managed, highly liquid money market fund. The pool is restricted to investments with
maturities of one year or less, and the average investment life typically is less than 90 days. Permissible
investments include U.S. government and agency securities, bankers' acceptances, high quality commercial
paper, repurchase and reverse repurchase agreements, and certificates of deposit issued by qualified Washington
State depositories.
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds only may also be invested in mutual funds
with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less
than four years; municipal securities rated in one of the four highest categories; and money market funds
consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating
categories. Bond proceeds may also be invested in shares of money market funds with portfolios of securities
otherwise authorized by law for investment by local governments (RCW 39.59.030).
7
The City's Investments
The investments of the City, except those of the Community Development Block Grant Fund, are managed in a
pooled format. Interest earnings are distributed monthly to the individual funds based on their respective
balances at the beginning of the month. These pooled investments are classified on the balance sheet as cash and
equivalents. As required by state statue, all investments and deposits of the City's funds are obligations of the
U.S. Government, U.S. agency issues, deposits with the State Treasurer's LGIP, prime bankers' acceptances,
deposits with Washington State banks and savings and loan institutions or repurchase agreements with authorized
securities as collateral.
NET DIRECT DEBT AND ESTIMATED NET
OVERLAPPING GENERAL OBLIGATION DEBT1
(As of December 31, 2000)
Direct Debt:
Voted General Obligation Bonds Outstanding .................. ' .............. $ 1,005,000
Non-Voted Bonds Outstanding ...................................................... 7,435,000
The Bonds ....................................................................................... 3,100,000
Non-Voted General Obligation Tax Anticipation Notes ................. 1,250,000
Bank Line of Credit Outstanding .................................................... 0
Less: Debt Service Fund Balance .................................................... (324,450)
Net Direct Debt .................................................................. $ 12,465,550
Estimated Net Overlapping Debt as of November 30, 2000:
Net G.O. Debt Percent of Amount of
Outstanding Overlap Overlap
Kitsap County. ................................ $ 69,275,561 10.69% $ 7,408,648
Port of Bremerton ........................... 3,600,000 25.01 900,360
Bremerton Sch. Dist. No. 100-C ..... 23,875,000 75.34 17,986,932
Central Kitsap Sch. Dist. No. 401 .... 79,610,000 1.01 804,086
South Kitsap Sch. Dist. No. 402 ...... 6,969,748 0.16 11,475
Estimated Net Overlapping Debt: ........................................... $ 27,111,501
Net Direct Plus Estimated Net Overlapping Debt: ..................................... $ 39,577,051
BONDED DEBT RATIOS OF THE CITY
Assessed Valuation for Collection Year 20012 ................................................... $ 1,482,231,297
Estimated City Population (2000)3 .................................................................... 36,160
Assessed Valuation Per Capita ............................................................................... $ 40,991
Net Direct Debt to Assessed Valuation. .................................................................... 84%
Net Direct and Estimated Overlapping Debt to Assessed Valuation ...................... 2.67%
Net Direct Debt Per Capita ..................................................................................... $ 345
Net Direct and Estimated Overlapping Debt Per Capita ......................................... $ 1,094
I Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's office.
2 Assessed valuation for tax collection year 200l is stated as the full assessed value of all taxable real and personal proper~y in the City.
3 Source: Washington State Office of Financial Management.
8
STATUTORY DEBT LIMIT CALCULATIONl
(As of December 31, 2000)
2000 Assessed Valuation for Collection Year 2001 .............................................. $ 1,482,23 [,2972
I. General Purposes
a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) ........................ $ 22,233,469
Less: Non-Voted Bonds Outstanding .......................................................... (7,435,000)
Less: The Bonds .......................................................................................... (3,100,000)
Less: Non-Voted Notes Outstanding .......................................................... (1,250,000)
Plus: Cash and Investments in Debt Service Funds .................................... 324,450
Remaining Capacity for General Purposes CNon-voted) ...................... $ 10,772,919
b. Voted Indebtedness Limit (2.5% of Assessed Valuation) ................................ $ 37,055,782
Less: Voted Bonds Outstanding .................................................................. (i ,005,000)
Less: Non-Voted Notes Outstanding ........................................................... (1,250,000)
Less: Non-Voted Bonds Outstanding (including the Bonds) ...................... ( 10,535,000)
Plus: Cash and Investments in Debt Service Funds .................................... 324,450
Remaining Capacity for General Purposes (Voted) ............................. $ 24,590,232
II. Utility Purposes (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Utility Purposes ............................................. $ 37,055,782
III. Parks and Open Space Purposes (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Parks and Open Space Purposes .................... $ 37,055,782
iV. Capital Facilities for Economic Development (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Economic Development ................................ $ 37,055,782
I Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's offices.
2 Assessed valuation for tax collection year 2001 is stated as the full assessed value of all taxable real and personal property in the City.
9
AD VALOREM TAX RECORD OF THE CITY1
Collection Taxable Assessed Tax Collected Year of Levy Collected as of November 30, 2000
Year Valuati0n2 Levy3 Amount Percent Amount Percent
2001 $ 1,482,231,297 NA4 NA4 NA4 NA4 NA4
2000 1,.410,350,733 $ 5,622,110 $ 5,328,636 94.78% $ 5,346,064 95.09%
1999 1,343,271,067 5,431,058 5,150,435 94.94 5,3t7,099 98.01
1998 1,345,904,065 5,450,559 5,219,429 95.76 5,405,360 99.17
1997 1,299,548,001 4,953,030 4,702,202 94.94 4,944,214 99.82
1996 1,223,940,521 4,686,230 4,482,747 95.66 4,682,795 99.93
1995 1,203,299,197 4,481,718 4,251,403 94.86 4,480,418 99.97
NOTE: Taxes are due and payable on April 30, of each year. At least one half of the tax amount due must be paid on or
before April 30, or else the total amount becomes delinquent on May 1. The second half of the tax due is payable
on or before October 31, becoming delinquent November 1.
AD VALOREM PROPERTY TAX RATES IN THE CITY1
(Rates In Dollars per $1,000 of Assessed Valuation)
City School Emerg.
Collection General City State Kitsap Port of Dist. No. Medical Regional
Year Fund Bonds Schools County Bremerton 100C PUD Services Library Total
2001 $ 3.2908 $ 0.1552 $ 3.0951 $ 1.5181 $ 0.4865 $ 4.8083 $ 0.0975 $ 0.4949 $ 0.5000 $ 14.4464
2000 3.3250 0.1578 3.2808 1.8552 0.5006 4.9954 0.1008 0.5000 0.5000 15.2150
1999 3.3250 0.2126 3.3178 1.8125 0.4814 5.1422 0.1017 0.5000 0.5000 15.3932
1998 3.3250 0.2218 3.5911 1.3908 0.4624 5.0292 0.1017 0.5000 0.5000 15.1220
1997 3.3469 0.2153 3.6467 1.6641 0.4338 5.1331 0.0998 0.2500 0.9781 15.7678
1996 3.3573 0.2255 3.4848 1.6347 0.4287 5.1551 0.0939 0.2500 0.4677 15.0977
MAJOR PROPERTY TAXPAYERS5
CITY OF BREMERTON
Assessed Valuation for 2001
Taxpayer Business Collection Year
Puget Sound Energy Utility $ 36,906,886
US West Communications Inc. Utility 25,397,583
Michael Cormolly (Trustee for Bremer Properties) Retail, Parking 8,201,000
Bay Pointe Retirement Community Retirement/Nursing Home 7,451,057
Haselwood, Charles & Joanne Land/Automotive Retail 7,042,900
Kitsap Physicians Services Health Plans Health Care 6,834,875
Merit Company Retail 6,729,000
Erlands Associates LLC Apartments 6~688,000
Viewerest Villages LTD Partnership Multifamily Residential Complex 6,683,000
Fir Lane Terrace Convalescent Center Convalescent Center 6,504,000
Beta Ballard LLC Retail 6,231,000
Bremerton Cascade Association Retirement Apartments 5,775,000
Cascade Natural Gas Corporation Utility 5,660,456
HealthSouth Corporation Health Care 5,033,987
I Source: Kitsap County Treasurer's and Assessor's offices.
2 Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City.
3 Includes all City levies.
4 Not available.
5 Source: Kitsap County Assessor's Office.
10
COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURESI
(Fiscal Year End[r~g December 31)
1999 1998 1997 1996 1995
Revenues:
Taxes $ 16,942,624 $ 16,201,397 $ 15,678,923 $ 15,498,917 $14,501,567
Licenses & Permits 376,370 314,340 348,796 312,203 298,989
Intergovernmental 1,114,093 1,027,234 812,436 742,432 847,272
Charges for Services 1,870,719 1,596,652 1,762,945 1,864,848 1,783,646
Fines & Forfeits 500,039 446,715 512,828 433,775 483,964
Miscellaneous 324,931 383,402 290,343 342,700 248,7.43
Total Revenues $ 21,128,776 $ 19,969,740 $ 19,406,271 $ 19,194,875 $18,164,181
Expenditures:
General Government $ 4,035,899 $ 4,075,157 $ 4,199,525 $ 5,313,516 $ 5,009,311
Security of Persons & Prop. 11,940,351 11,685,742 10,893,020 9,313,570 8,614,262
Physical Environment 549,929 555,693 613,338 942,764 848,346
Transportation 1,133,438 986,816 923,064 959,327 850,639
Economic Environment 826,067 862,864 507,996 276,689 454,250
Mental & Physical Health 24,632 24,632 24,632 30,818 264,239
Culture & Recreation 1,853,003 1,780,180 1,768,867 1,867,204 1,566,669
Redemption of LTGO Debt 0 4,194 2,688 0 0
Debt Service 55,989 57,478 74,055 85,540 59,860
Capital Outlay 198,269 208,697 298,438 404,888 486,005
Total Expenditures $ 20,617,577 $ 20,241,453 $ 19,305,623 $ 19,194,316 $18,153,58I
Other Financing Sources (Uses)
Operating Transfers In . $ 254,457 $ 251,251 $ 113,144 $ 196,725 $ 6,000
Operating Transfers Out (394,624) (397,428) (406,836) (357,180) (307,836)
General Fixed Assets Disp. 21,423 15,316 15,568 36,671 2,886
Proceeds of LTGO Debt 0 0 16,629 237,700 0
Total Other Financing Sources $ (118,744) $ (130,861) $ (261,495) $ 113,916 $ (298,950)
(Uses)
Fund Balance, January 1 $ 314,484 $ 701,726 $ 861,135 $ 709,671 $ 1,064,368
Prior Year's Corrections 0 0 0 0 0
Residual Equity Transfers 477 0 0 6,435 (65,128)
Other Equity Changes 7,557 15,332 1,438 30,554 41,219)
lotal Ending Fund Balance $ 714,973 $ 314,484 $ 701,726 $ 861,135 $ 709,671
CONTINGENCY RESERVE FUND
YEAR-END BALANCESI, 2
1999 1998 1997 1996 1995
Ending Fund Balance $ 697,517 $ 709,162 $ 706,947 $ 673,110 $ 70%040
I Source: City of Bremerton AnnuaI Financial Reports. All years have beea audited by the Washington State Auditor's Office.
2 $650,000 is the minimum per City policy. Interest earnings on the batance is transferred to the General Fund in the following year,
Preliminary Contingency Reserve Fund balance for 2000 is 5;857,000.
11
GENERAL FUND BUDGET FOR 2000 AND 2001 l
(Fiscal Year Ending December 31 )
2001 2000
REVENUES
Beginning Fund Balance $ 1,500,000 $ 500,000
Taxes 17,569,000 16,929,500
Licenses and Permits 395,200 348,480
Intergovernmental Revenue 902,020 1,044,609
Charges for Services 1,999,995 1,761,711
Fines and Forfeitures 763,500 536,600
Miscellaneous and Other 3,353,300 3,035,172
Total Revenue $ 26,483,015 $ 24,156,072
EXPENDITURES
General Government
City Council $ 165,856 $ 167,231
Executive 216,887 161,577
Administrative Services2 2,415,708 2,112,583
Police & Fire Pension 1,533,395 1,554,786
Parking 610,000 0
Intergovernmental Service 193,556 134,447
Misc. Non-Departmental 1,982,764 1,297,578
Legal Department 468,074 505,28 I
Human Resources 215,530 208,348
Community Development 609,076 712,021
City Auditor 133,623 87,709
Public Safety
Police Department 6,374,375 6,448,232
Fire Department 4,705,861 4,234,482
F ~ ~ii,: Works
General Facilities 493,442 434,979
Engineering 299,233 339,827
Equipment Services Division 1,549,058 1,200,853
Leisure Services
Administration 269,734 0
Parks & Facilities Maintenance 823,844 0
General Parks 0 1,097,874
Recreation 454,443 222,066
Senior Center 0 171,487
Pool 0 300,874
Cemetery Services 0 71,831
Athletics, Aquatics 468,556 192,006
Tax Anticipation Note Debt Service 2,500,000 2,500,000
Total Current Expenditures $ 26,483,015 $ 24,156,0723
t
Source: City of Bremerton.
2
City Clerk, Treasurer, Information Services, Municipal Court and Risk Management are combined under Administrative Services.
3
Preliminary year-end General Fund balance is $1,680,000.
12
SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY
(Years Ending December 31)
Outstanding Non-
Voted General Voted General Total
Obligation Bonds Obligation Bonds The Bonds Debt
Year Principal Interest Principal Interest Principal Interest Service
2001 $ 185,000 $ 40,805 $ 350,000 $ 395,413 $ 75,000 $ 106,755 $ 1,152,973
2002 190,000 32,647 365,000 378,555 I05,000 139,246 1,210,448
2003 205,000 23,906 380,000 360,595 110,000 134,915 1,214,416
2004 135,000 16,308 405,000 341,520 115,000 [30,378 1,143,206
2005 140,000 10,085 425,000 320,860 120,000 125,634 1,141,579
2006 150,000 3,450 445,000 298,395 125,000 120,684 1,142,529
2007 0 0 465,000 274,210 130,000 115,527 984,737
2008 0 0 495,000 248,722 135,000 110,165 988,887
2009 0 0 520,000 221,168 140,000 104,495 985,663
2010 0 0 555,000 191,952 145,000 98,475 990,427
2011 0 0 590,000 160,135 55,000 92,095 997,230
2012 0 0 540,000 126,160 60,000 85,275 911,435
2013 0 0 280,000 97,505 70,000 77,995 625,500
2014 0 0 300,000 83,505 75,000 70,090 628,595
2015 0 0 300,000 68,355 85,000 61,777 615,432
2016 0 0 325,000 53,055 90,000 52,805 620,860
2017 0 0 340,000 36,318 200,000 43,495 619,813
2018 0 0 355,000 18,637 210,000 33,595 617,232
2019 0 0 0 0 220,000 23,095 243,095
2020 0 0 0 0 235,000 11,985 246,985
Total $ 1,005,000 $ 127,201 $ 7,435,000 $ 3~675,060 $ 3,100,000 $ 1,738,481 $ 17,081,042
CITY PROFILE
City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor Council form of
government. The Council is comprised of nine members, elected by district by the citizens of the City, each
a four-year term. The Council Members are part-time elected officials who exercise the legislative powers
City and determine matters of policy. The Mayor, a full-time elected official, is the chief executive officer
City. The Officers and department directors are appointed by the Mayor with Council approval.
City provides a full range of municipal services including fire and police protection, parks and recreation
facilities/activities, streets, planning, zoning and general administrative services. The City operates water, sewer
stormwater utility systems. Currently, there are 342 full-time employees of the City.
Personnel
Horton, Mayor: Ms. Horton began her second term as Mayor of the City in 1998. Before her election as
she served for six years on the Bremerton City Council. She is the past Chair and current Board Member
Kitsap Regional Planning Council, and a board member of Kitsap Transit, Kitsap County Cen-Com and the
Bremerton-Kitsap County Health Department. Ms. Horton is a graduate of the University of Washington and has
resident of the City since 1974.
Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986. Before
the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna received his Bachelor's
in Accounting from Western Washington University in 1974 and a Masters of Business Administration
in Finance from University of Puget Sound in 1983. Mr. Hanna is a member of the Washington Finance
Officers Association, Washington Municipal~ Treasurers Association and Puget Sound Finance Officers
Association.
13
Labor Relations
The City has entered into written agreements with each of the bargaining groups set forth below. These
agreements contain provisions on such matters as vacations, sick leave, medical and dental insurance, salaries,
working conditions and grievance procedures.
Employees of the City. represented by bargaining units are as follo~vs:
Union Membership Contract Period Expiration Date
Teamsters Local 589 130 3 yr. 12/31/00'
Patrolman's Association 53 1 yr. 12/31/00'
Police Management Association 5 1 yr. 12/31/00'
International Association of Fire Fighters Local 437 44 3 yr. 12/31/01
* In process of negotiation.
In accordance with State requirements, the City conducts full negotiations with all bargaining units. The City's
management considers its relations with employees to be satisfactory.
Auditing of City Finances
The State Auditor is required to examine the affairs of cities at least once every two years. The examination must
include, among other things, the financial condition and resources of the City, whether the laws and constitution
of the State are being complied with, and the methods and accuracy of the accounts and reports of the City.
Reports of the Auditor's examinations are required to be filed in the office of the State Auditor and in the auditing
department of the City. The City's most recent audited report is for calendar year 1999.
GENERAL AND ECONOMIC INFORMATION
The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and 35 miles north of
Tacoma. The largest city in Kitsap County (the "County"), Bremerton was incorporated in 1901 and has an
estimated 2000 population of 36,160 Kitsap County, covering 393 square miles of land, also includes the
following other incorporated areas: Bainbridge Island (2000 population 20,150), Port Orchard (2000 population
7,270) and Poulsbo (2000 population 6,500).
Military Presence
The economy of the City is closely tied to the United States Navy. In 1999, the estimated armed forces
population in Kitsap County was 10,809. The Puget Sound Naval Shipyard in Bremerton ("PSNS") is the largest
Naval shipyard on the Pacific Coast and is the only West Coast shipyard capable of working on nuclear ships.
With 7,711 civilian employees, 49 military personnel (excluding ship personnel), and approximately 12,000
military family members, the shipyard is also the only facility capable of decommissioning and recycling nuclear
submarines which are being disassembled in accordance with Strategic Arms Limitations Treaties. PSNS is the
largest naval employer in the State. The shipyard itself encompasses 344 acres of land, 382 buildings and nine
permanent piers totaling 12,310 feet of deep water space. The economic impact of PSNS locally is approximately
$700 million per year.
The Fleet and Industrial Supply Center is another local Naval facility in the City, with 619 civilian employees and
20 military personnel. Naval Station Bremerton employs 936 civilians and 232 military personnel.
Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor. Bangor serves as a
home base for Trident Missile submarines, the USS Parche fast attack submarine and various support commands.
The base provides employment to 3,400 civilians, and 5,900 military personnel. Another 10,000 military family
members are connected to the base. Bangor is the only base of its kind on the Pacific Coast. Annual local
economic impact of Bangor is $230 million.
The largest subcontractor providing services to the U.S. Department of Defense in Kitsap County is Johnson
Controls World Service, with 658 employees. BAE Systems is the second largest, with 325 employees.
Another military installation located near the City is the Naval Undersea Warfare Engineering Station at Keyport.
The station tests and maintains torpedoes, provides maintenance support for fire control equipment and mines,
and provides other engineering-related services for undersea warfare. The Undersea Warfare Station employs
1,859 civilian and 30 military personnel,
14
Other Major Employers
The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre Olympic View
Industrial Park, both located approximately 10 miles southwest of the City. The park includes 32 firms which
employ a total of approximately 350 people. Over 500 acres of land at the industrial park are designated as a
foreign trade zone which offers duty savings to its tenants.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot run~vay and full instrumentation
and lighting systems. The airport can handle all general aviation aircraft and most transport and military planes.
Charter passenger and air freight services are available to SeaTac Airport, the major international airport in the
Puget Sound area. The Bremerton Airport has recently undergone improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton
with 355 civilian and 729 military personnel serving approximately 80,000 military, family members and retirees
in the area. The hospital is undergoing a $24 million expansion project, due for completion in late Spring 2001.
Harrison Hospital in Bremerton has 1,162 employees and 297 beds. A Radiation Oncotogy Center was recently
completed at Harrison with 14,000 square feet of space. A number of nursing homes and retirement complexes
are also located in Bremerton.
Olympic College is a two-year public community college located in Bremerton, with an enrollment of
approximately 4,310 (full-time equivalents). The college has 290 full-time permanent employees, but can employ
up to 600 employees, including part-time student workers. The college offers associate of arts degrees in four
fields, as well as adult education and non-credit courses, and began a four-year degree program (called "2-Plus-
2") in 1994. The 2-Plus-2 degree program is associated with the University of Washington, Tacoma branch. A
new library is being constructed at the college.
See the table on page 18 of this Official Statement for a list of employers in Kitsap County with 200 or more
emptoyees.
In 1999, the average new home price in the City was $136,048, which is approximately 12% higher than prices in
1991. The residential subdivision, Illahee North Division 2, added 22 new single-family residential lots to the
City's total. A survey conducted in September of 2000 indicated an average rent in the City of $569 per month,
and a 6.4% vacancy rate. The downtown office vacancy rate, excluding buildings converted to office use for the
U.S. Navy, was 8.65% in 1999.
New Developments
Among the projects recently completed or proposed for development in Bremerton are the following:
· A multi-modal transportation facility is now under construction on the City's downtown waterfront. The
project includes foot ferries that serve Bremerton, the Bremerton Transportation Center, and highway
improvements to Bremerton. The cost of the publicly funded projects is estimated at $21 million. The new
Bremerton Transportation Center which is under construction will serve ferry, bus, bicycle and pedestrian
commuters and travelers on their way to Seattle and Port Orchard. Expanded ferry service with higher-speed
foot passenger ferry service between Bremerton and Seattle began service in 1998.
· Pope Resources, a timber and land management company based in Poulsbo, and its subsidiary, Olympic
Resource Management, have obtained land within the City that is planned for development as a 61-acre
business park and 209 acres for 450 new homes. The project has received permit approval from the City and
construction is under way.
· Olympic View Business Park is being developed by the Port for business and technology-oriented businesses.
It lies adjacent to a broad bandwith fiber optics line and the Bremerton National Airport. Construction of the
30-acre planned business park, began in the summer of 2000.
· Port Blakely Communities has plans to develop a mixed use project on land west of Kitsap Lake. Located
just outside of the current City limits, this area would likely be annexed to the city. The project includes
approximately 900 housing units with parking and other amenities to attract and be suitable for home-based
businesses. A business park with 2.225 million square feet is also included in the project plans. As many as
9,000 jobs could be associated with the project, which is currently in the planning stage.
· The Bremerton Gateway Project is a $40 million multi-year traffic modification under construction for the
Ci~'s main entry corridor. Included in the project are beautification, traffic improvement, street widening
and related projects designed to improve the first impression upon entering the City.
· The Northwest Corporate Campus is a business park and residential community planned for development on
244 privately owned acres near the City, that are zoned for industrial and residential use. The project-plans
15
include a building for light industrial use on 188 acres as well as approximately 200 middle-income
residential units on 56 acres.'
Following are economic indicators of the City and the County.
KITSAP COUNTY POPULATION1
City of Other Kitsap County Kitsap County
Year Bremerton Incorporated Unincorporated Total
2000 36,160 33,920 160,120 230,200
1999 36,888 33,540 159,890 229,700
1998 37,260 32,615 159,125 229,000
1997 38,600 32,060 158,740 229,400
1996 38,496 31,210 155,120 224,700
1995 39,6 l0 29,915 151,075 220,600
1994 35,920 28,625 148,655 213,200
1993 36,380 28,160 145,460 210,000
1992 38,990 27,405 139,205 205,600
1991 37,040 26,639 132,821 196,500
1990 38,142 12,913 138,676 189,731
TAXABLE RETAIL SALES2
City of
Year Kitsap County Bremerton
20003 $ 1,137,049,303 5; 281,554,539
1999 2,309,819,810 562,364,764
1998 2,064,021,512 506,875,439
1997 1,958,346,681 498,779,418
1996 1,836,198,934 477,467,218
1995 1,768,304,057 451,277,414
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS4
Number of Number of
Year Vehicles Passengers
1999 731,969 2,488,466
1998 714,903 2,211,641
1997 756,796 2,047,014
1996 731,926 1,863,596
1995 751,266 1,820,433
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT5
Resident Civilian Average Annual Total
Year Labor Force Unemployment Employment Kitsap County (%) Washington (%)
1999 93,300 4,700 88,600 5.0 4.7
1998 91,300 4,800 86,500 5.3 4.8
1997 93}000 5,100 87,900 5.5 4.8
1996 93,500 6,300 87,200 6.7 6.5
1995 89,600 6,000 83,600 6.7 6.4
I Source: Washington State Office of Financial Management and U.S. Census.
2 Source: Washington State Department of Revenue.
3 2000 figures are for first two quarters only.
4 Source: Washington State Department of Transportation, Marine Division.
5 Source: Washington State Employment Security.
16
KITSAP COUNTY MEDIAN HOUSEHOLD INCOME ESTIMATES!
Year
2000 $ 45,40t
1999 44,036
1998 42,484
1997 41,524
1996 39,808
MAJOR EMPLOYERS IN KITSAP COUNTY2
(As of October 2000)
No. of
Major Government Employers (Civilian/Military) Employees
Puget Sound Naval Shipyard (7,711/49)~2 7,760
Naval Submarine Base Bangor (3,400/5,900) 9,300
Naval Undersea Warfare Center (1,859/30) i,889
Naval Station Bremerton (936/232)2 1,168
Naval Hospital Bremerton (355/729)2 1,084
Fleet industrial Supply Center (619/20)2 639
Major Defense Contractors
Johnson Controls World Services (estimate) 658
BAE Systems 325
Lockheed Martin 262
Raytheon Systems 200
American Systems Engineering Corporation 219
Major Local & State Public Agency Employers
Central Kitsap School District2 1,400
South Kitsap School District2 1,100
Kitsap County2 1,050
Bremerton School District2 752
North Kitsap School District 713
Washington State Ferries3, 4 350
City of Bremerton2 327
United State Postal Service2 291
Olympic College2 290
Retsil Veterans Home3 280
Kitsap Transit2 277
Bainbridge Island School District 220
Educational Service District #I 142 200
Major Private Sector Employers
Harrison Hospital2 1,162
Town & County Markets2 350
Belmont Terrace/Ridgemont Terrace 340
WalMart (2 locations)2 332
Albertsons (5 locations)2 313
Laurier Enterprises (McDonald's)2 295
Martha & Mary Nursing Home & Child Ctr. 276
Port Madison Enterprises (Suquamish Tribe) 261
Safeway2 260
COSTCO Wholesale 240
The Doctors Clinic2 230
Kitsap Mental Health 225
The Bon Marche 204
Group Health Cooperative 200
Courtesy Chevrolet/Ford/Mitsubishi 200
I Source: Washington State Office of Financial Management; figures for 2000 are forecast. All figures are presented in current dollars.
2 Source: Kitsap County Economic Development Council as of October 2000.
3
Located partially or totally within the City of Bremerton.
4
Source: Washington State Employment Security, LMEA.
17
ORIGINAL ISSUE DISCOUNT
The Bonds maturing in years 2011 through 2020 have been sold at a price reflecting original issue discount
("Discount Bonds"). Under existing law, the original issue discount in the selling price of each Discount Bond, to
the extent properly allocable to each owner of such Discount Bond, is excluded from gross income for federal
income tax purposes with respect to such owner. The original issue discount is the excess of the stated
redemption price at maturity of such Discount Bond over the initial offering price to the public, excluding
under,wirers and other intermediaries, at which price a substantial amount of the Discount Bonds of such maturity
were sold.
Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound basis. The
amount of original issue discount that accrues to an owner of a Discount Bond during any accrual period
generally equals (i) the issue price of such Discount Bond plus the amount of original issue discount accrued in
all prior accrual periods, multiplied by (ii) the yield to maturity of such Discount Bond (determined on the basis
of compounding at the close of each accrual period and properly adjusted for the length of the accrual period),
less (iii) any interest payable on such Discount Bond during such accrual period. The amount of original issue
discount so accrued in a particular accrual period will be considered to be received ratably on each day of the
accrual period, will be excluded from gross income federal income tax purposes, and will increase the owner's tax
basis in such Discount Bond. Any gain realized by an owner from a sale, exchange, payment or redemption of a
Discount Bond will be treated as gain from the sale or exchange of such Discount Bond.
The portion of original issue discount that accrues in each year to an owner of a Discount Bond may result in
certain collateral federal income tax consequences. The accrual of such portion of the original issue discount will
be included in the calculation of alternative minimum tax liability as described above, and may result in an
alternative minimum tax liability even though the owner of such Discount Bond will not receive a corresponding
cash payment until a later year.
Owners who purchase Discount Bonds in the initial public offering but at a pr/ce different from the first offering
price at which a substantial amount of those Discount Bonds were sold to the public, or who do not purchase
Discount Bonds in the initial public offering, should consult their own tax advisors with respect to the tax
consequences of the ownership of such Discount Bonds. Owners of Discount Bonds who sell or otherwise
dispose of such Discount Bonds prior to maturity should consult their own tax advisors with respect to the amount
of original issue discount accrued over the period such Discount Bonds have been held and the amount of taxable
gain or loss to be recognized upon that sale or other disposition of Discount Bonds. Owners of Discount Bonds
also should consult their own tax advisors with respect to state and local tax consequences of owning such
Discount Bonds.
ORIGINAL ISSUE PREMIUM
The Bonds maturing in years 2001 through 2007 have been sold at prices reflecting original issue premium
("Premium Bonds"). An amount equal to the excess of the purchase price of a Premium Bond over its stated
redemption price at maturity constitutes premium on such Premium Bond. A purchaser of a Premium Bond must
amortize any premium over such Premium Bond's term using constant yield principles, based on the purchaser's
yield to maturity. The amount of amortizable premium allocable to an interest accrual period for a Premium
Bond will offset a like amount of qualified stated interest on such Premium Bond allocable to that accrual period,
and may affect the calculation of alternative minimum tax liability described above. As premium is amortized,
the purchaser's basis in such Premium Bond is reduced by a corresponding amount, resulting in an increase in the
gain (or decrease in the loss) to be recognized for federal income tax purposes upon a sale or disposition of such
Premium Bond pr/or to its maturity. Even though the purchaser's basis is reduced, no federal income tax
deduction is allowed. Purchasers of Premium Bonds, whether at the time of initial issuance or subsequent thereto,
should consult with their own tax advisors with respect to the determination and treatment of premium for federal
income tax purposes and with respect to state and local tax consequences of owning such Premium Bonds.
PRESERVATION OF TAX EXEMPTION
The City has covenanted, in the Ordinance, it will not take or permit to be taken on its behalf any action that
would adversely affect the exclusion of the interest on the Bonds from gross income for purposes of federal
income taxation, and will take or require to be taken such acts as may be permitted by Washington law and as
may from time to time be required under applicable law to continue the exclusion of the interest on the Bonds
from gross income for purposes of federal income taxation. The City certifies that it has not been notified of any
18
listing or proposed listing by the Internal Revenue Service to the effect t?.at it is a bond issuer whose arbitrage
certifications may not be relied upon.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the
Bonds. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to issuers
other than the City and transactions other than the issuance of the Bonds. None of the council members or other
officers of the City has interests in the issuance of the Bonds that are prohibited by applicable law.
TAX EXEMPTION
In the opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, as of the date of issue of the Bonds (the
"Date of Issue"), and subject to certain assumptions described in the next paragraph: the Bonds are not "private
activity bonds," as defined by the Code; the Bonds have been designated by the City as "qualified tax-exempt
obligations" for purposes of the partial interest expense deduction under Section 265 of the Code; interest
on the Bonds is excluded from gross income for federal income tax purposes under existing federal law; and such
interest is not an item of tax preference for purposes of determining the alternative minimum tax on individuals
and corporations under existing federal law. However, under existing federal law interest on the Bonds received
by certain corporations is to be taken into account in the computation of adjusted current earnings for purposes of
calculating the alternative minimum tax applicable to such corporations: such interest received by certain S
corporations may be subject to tax; and such interest received by foreign corporations with United States
branches may be subject to a foreign branch profits tax. Bond Counsel expresses no opinion regarding any other
federal tax consequences of receipt of interest on the Bonds. Potential purchasers of the Bonds should consult
with their tax advisors as to all possible tax consequences of ownership of the Bonds. See also, "O/I-Il=P, TAX
CONSEQUENCES," herein.
The Code contains certain requirements which must be satisfied subsequent to the issuance of the Bonds in order
to maintain the tax treatment described above, including requirements relating to the application of the proceeds
of the Bonds, use of facilities which are financed with such proceeds, limitations on income derived from the
investment of gross proceeds of the Bonds, and rebate to the United States Treasury of certain of such investment
income on such gross proceeds. The City has covenanted to comply with these requirements; and the opinion of
Bond Counsel described in the preceding paragraph assumes such compliance. However, Bond Counsel has not
undertaken and shall not undertake to mon2or compiiance by me Cits,' ~,-.xh such requirements an~ failure of the
City to comply with such requirements could cause the interest on the Bonds to be included in gross income for
federal income tax purposes, and could be treated as an item of tax preference for purposes of the alternative
minimum tax on individuals and corporations, and could result in a loss of the partial interest expense deduction
available for qualified tax-exempt obligations, in each case, retroactive to the Date of Issue.
OTHER TAX CONSEQUENCES
Under current federal law:
1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a
corporation is taken into account in the computation of the alternative minimum tax applicable to
co.~orations (as defined for federal income tax purposes). Under current federal law, the alternative
minimum taxable income of such a corporation (other than an S corporation, a regulated investment
company, a real estate investment trust or a REMIC) is increased by 75% of the amount by which the
"adjusted current earnings" of the corporation exceeds the corporation's alternative minimum taxable
income determined without regard to such increase and any alternative tax net operating loss deduction.
Interest on tax-exempt obligations, whenever issued or acquired, including interest on the Bonds, is
include. J. in the computation of"a~usted net book income" and "adiusted current earnings."
For taxable years beginning after December 31, 1997, the corporate alternative minimum tax is repealed
for small business corporations that had average gross receipts of less than $5 million for the 3-year
period beginning after December 31, 1994, and such small business corporations will continue to be
exempt from the corporate alternative minimum tax so long as their average gross receipts do not exceed
$7.5 million
19
2. Tax on Excess Passive Investment Income of S Corporations. Certain excess net passive investment
income, including interest on the Bonds, received by an S corporation (a corporation treated as a
partnership for most federal tax purposes) that has "subchapter C earnings and profits" at the close of its
taxable year may be subject to federal income tax at the highest rate applicable to corporations if more
than 25% of the gross receipts of such S corporation for such taxable year is passive investment income.
3. Foreign Corporation Branch Profits Tax. Interest on the Bonds received by certain foreign
corporations doing business in the United States may be subject to a branch profits tax applicable to such
corporations that is based on their Untied States source earnings and profits, including tax-exempt interest
on obligations such as the Bonds.
4. Reduction of Loss Deduction for Property and Casualty Insurance Companies. Interest on tax-
exempt obligations, including the Bonds, received by property and casualty insurance companies, will
reduce tax deductions for loss reserves other~vise available to such companies by an amount equal to 15
percent of such tax-exempt interest received during the taxable year.
5. Social Security and Tier 1 Railroad Retirement Benefits Subject to Tax. Interest received or accrued
during the year from tax-exempt obligations, such as the Bonds, is included in the calculation of
"modified adjusted gross income" of recipients of the social security or tier 1 railroad retirement benefits.
If the sum of the "modified adjusted gross income" for the taxable year plus one-half of the social
security or tier 1 railroad retirement benefits received during the taxable year exceeds a base amount
provided by the Code (the "excess amount"), then the lesser of.(i) one-half of the social security or tier 1
railroad re'tirement benefits received during the taxable year or (ii) one-half of the "excess amount", is
included in the gross income of the social security or tier 1 railroad retirement benefit recipient.
ABSENCE OF MATERIAL LITIGATION
There is no litigation of any kind now pending or, to the knowledge of the City, threatened to restrain or enjoin
the issuance or delivery of the Bonds or in any manner questioning the proceedings and authority under which the
Bonds are issued or affecting the ability of the City to pay the principal of or the interest on the Bonds.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to the approving
legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of Bond Counsel will
be delivered with the Bonds.
CONTINUING DISCLOSURE
The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Bonds required by
subsection (b)(5)(i) of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission
(the "SEC"), to provide or cause to be provided to each then existing nationally recognized municipal securities
information repository designated by the SEC ("NRMSIR") and to the State Information Depository ("SID"), if
one is created, the following annual financial information and operating data (collectively, the "Annual Financial
Information") for each prior fiscal year, commencing with the fiscal year ending December 3 I, 2001, on or before
the last day of the ninth month following the end of such prior fiscal year:
(a) annual financial statements prepared in accordance with the generally accepted accounting principles
applicable to governmental units, as such principles may be changed from time to time and as permitted by
State law; which statements will not be audited, except that if and when audited financial statements are
other~vise prepared and available to the City, they will be provided (the "Annual Financial Statements");
Co) authorized, issued and outstanding balance of general obligation bonds;
(c) assessed valuation for the fiscal year;
(d) regular property tax levy rate and regular property tax levy rate limit for the fiscal year; and
(e) narrative explanation for the reasons for any amendments to the undertaking made during the previous
fiscal year and the impact of such amendments on the Annual Financial Information being provided.
20
In its provision of Annual Financial Information and operating data, the City may cross-reference to any "final
offici:t! statement" (as defined in the Rule) available from the Municipal Securities Rulemaking Board (the
"MSi(B') or any other documents theretofore provided to each then existing NRMSIR or the SID, if one is
created.
The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to
either the MSRB or each then existing NRMSIR, notice of any of the following events with respect to the Bonds,
i f material:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
7. Modifications to rights of the O~vners of the Bonds;
8, Optional redemptions of the Bonds;
9. Defeasances of the Bonds;
10. Release, substitution or sale of property securing repayment of the Bonds; and
11. Rating changes.
The City also agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to
either the MSRB or each then existing NRMSIR, notice of its failure to provide the Annual Financial Information
for the prior fiscal year on or before the last day of the seventh month following the end of such prior fiscal year.
After the issuance of the Bonds, so long as the interests of the Owners or Beneficial Owners of the Bonds will not
be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation,
a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorable "no-action letter" issued by the SEC, this continuing disclosure undertaking may
only be amended in connection with any change in legal requirements, change in law, or change in the identity,
nature or status of the obligated person, or type of business conducted, and only in such a manner that the
continuing disclosure undertaking of the City, as so amended, would have comr~lied with the requirements of the
Rule at the time of the phmary offering, after ta2:ng into account any amendments or interpretations of the Rule,
as well as any change in circumstances.
The City's obligations to provide Annual Financial Information and notices of certain events shall terminate
without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding
Bonds. This continuing disclosure undertaking or any provision hereof, shall be null and void if the City (i)
obtains an opinion of nationally recognized bond counsel or other counsel familiar with the federal securities laws
to the effect that those portions of the Rule which require this continuing disclosure undertaking or any such
provision are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (ii) notifies
and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such opinion.
The right of each Owner or Beneficial Owner of Bonds to enforce the provisions of this continuing disclosure
undertaking shall be limited to the right to obtain specific enforcement of the City's obligations in this continuing
disclosure undertaking and any failure by the City to comply with the provisions of this continuing disclosure
undertaking shall not be a default with respect to the Bonds under the Ordinance.
MUNICIPAL BOND INSURANCE
The following information has been furnished by MBIA Insurance Corporation (the "Insurer") for use in this
Official Statement. Reference is made to Appendix C for a specimen of the Insurer's policy.
The Insurer's policy unconditionally and irrevocably guarantees the full and complete payment required to be
made by or on behalf of the Issuer to the Paying Agent or its successor of an amount equal to (i) the principal of
(either at the stated maturity or by an advancement of maturity pursuant to a mandatory sSnl~ing fund payment)
and interest on, the Bonds as such payments shall become due but shall not be so paid (except that in the event of
any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration
resulting from default or other~vise, other than any advancement of maturity pursuant to a mandatory sinking fund
payment, the payments guaranteed by the Insurer's policy shall be made in such amounts and at such times as
such payments of principal would have been due had there not been any such acceleration); and (ii) the
21
reimbursement of any such payment xvhich is subsequently recovered from any owner of the Bonds pursuant to a
final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such
owner within the meaning of any applicable bankruptcy law (a "Preference").
The Insurer's policy doe~ not insure against loss of any prepayment premium which may at any time be payable
xvith respect to any Bond. The Insurer's policy does not, under any circumstance, insure against loss relating to:
(i) optional or mandatory redemptions; (ii) any payments to be made on an accelerated basis; (iii) payments of the
purchase price of Bonds upon tender by an owner thereof; or (iv) any Preference relating to (i) through (iii)
above. The Insurer's policy also does not insure against nonpayment of principal of or interest on the Bonds
resulting from the insolvency, negligence or any other act or omission of the Paying Agent or any other paying
agent for the Bonds.
Upon receipt of telephonic or telegraphic notice, such notice subsequently confirmed in writing by registered or
certified mail, or upon receipt of ~vritten notice by registered or certified mail, by the Insurer from the Paying
Agent or any owner of a Bond the payment of an insured amount for which is then due, that such required
payment has not been made, the Insurer on the due date of such payment or within one business day after receipt
of notice of such nonpayment, whichever is later, will make a deposit of funds, in an account with State Street
Bank and Trust Company, N.A., in New York, New York, or its successor, sufficient for the payment of any such
insured amounts which are then due. Upon presentment and surrender of such Bonds or presentment of such
other proof of ownership of the Bonds, together with any appropriate instruments of assignment to evidence the
assignment of the insured amounts due on the Bonds as are paid by the Insurer, and appropriate instruments to
effect the appointment of the Insurer as agent for such owners of the Bonds in any legal proceeding related to
payment of insured amounts on the Bonds, such instruments being in a form satisfactory to State Street Bank and
Trust Company, N.A., State Street Bank and Trust Company, N.A. shall disburse to such owners or the Paying
Agent payment of the insured amounts due on such Bonds, less any amount held by the Paying Agent for the
payment of such insured amounts and legally available therefor.
The Insurer is the principal operating subsidiary of MBIA Inc., a New York Stock Exchange listed company (the
"Company"). The Company is not obligated to pay the debts of or claims against the Insurer. The Insurer is
domiciled in the State of New York and licensed to do business in and subject to regulation under the laws of all
50 states, the District of Columbia and the Commonwealth of Puerto Rico, the Common~vealth of the Northern
Mariana Islands, the Virgin Islands of the United States and the Territory of Guam. The Insurer has two
European branches, one in the Republic of France and the other in the Kingdom of Spain. New York has laws
prescribing minimum capital requirements, limiting classes and concentrations of investments and requiring the
approval of policy rates and forms. State laws also regulate the amount of both the aggregate and individual risks
that may be insured, the payment of dividends by the Insurer, changes in control and transactions among
affiliates. Additionally, the Insurer is required to maintain contingency reserves on its liabilities in certain
amounts and for certain periods of time.
As of December 31, 1999 the Insurer had admitted assets of $7.0 billion (audited), total liabilities of $4.6 billion
(audited), and total capital and surplus of $2.4 billion (audited) determined in accordance with statutory
accounting practices prescribed or permitted by insurance regulatory authorities. As of September 30, 2000, the
Insurer had admitted assets of $7.5 billion (unaudited), total liabilities of $5.1 billion (unaudited), and total capital
and surplus of $2.4 billion (unaudited) determined in accordance with statutory accounting practices prescribed or
permitted by insurance regulatory authorities.
Furthermore, copies of the Insurer's year end financial statements prepared in accordance with statutory
accounting practices are available without charge from the Insurer. A copy of the Annual Report on Form 10-K of
MBIA Inc. is available from the Insurer or the Securities and Exchange Commission. The address of the Insurer
is 113 King Street, Armonk, New York 10504. The telephone number of the Insurer is (914) 273-4545.
Moody's Investors Service, Inc. ("Moody's")rates the financial strength of the Insurer "Aaa."
Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc. ("Standard & Poor's"),
rates the financial strength of the Insurer "AAA."
Fitch IBCA, Inc. (formerly known as Fitch Investors Service, L.P.) rates the financial strength of the Insurer
Each rating of the Insurer should be evaluated independently. The ratings reflect the respective rating agency's
current assessment of the creditworthiness of the Insurer and its ability to pay claims on its policies of insurance.
Any further explanation as to the significance of the above ratings may be obtained only from the applicable
rating agency.
The above ratings are not recommendations to buy, sell or hold the Bonds, and such ratings may be subject to
revision or withdrawal at any time by the rating agencies. Any downward revision or withdrawal of any of the
22
ratings may have an adverse effect on the market price of the Bonds. The Insurer does not guaranty the market
price ol' the Bonds nor does it guaranty that the ratings on the Bonds will not be reversed or withdraxvn.
RATING
The City has received a rating on the Bonds from Moody's Investors Service, as indicated on the cover of this
Official Statement. The rating reflects only the view of the rating agency and an interpretation of such rating may
be obtained only from the rating agency furnishing the same. There is no assurance that such rating will continue
for any given period of time or that it will not be revised downward or withdrawn entirely by the rating agency, if,
in the judgment of such agency, circumstances so warrant. Any such revision or withdra~val of either such rating
may have an adverse effect on the market price of the Bonds.
UNDERWRITING
The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds, if any are purchased, at a
price of 99.22% of the par value of the Bonds, plus accrued interest from the dated date to the settlement date.
The Bonds will be reoffered at an average price of 100.00% of the par value of the Bonds, resulting in a
underwriting spread of $7.80 per $1,000 of principal amount of the Bonds. After the initial public offering, the
public offering prices may be varied from time to time.
CONCLUDING STATEMENT
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they
are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City or the
Bonds. Additional information may be obtained directly from the City or the Underwriter.
The tbregoing statements relating to the Ordinance and other documents are in all respects subject to and
qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and all subsequent pages, including the appendices,
comprise the entire Official Statement, which has been approved by the City. The City has represented to the
Underwriter that the portions of this Official Statement directly pertaining to the City neither contain any
misrepresentation of material fact nor omit any material fact necessary to understand the financial, economic or
legal nature of the City or any information presented herein.
23
This page left blank intentionally.
APPENDIX A
FORM OF LEGAL OPINION
APPENDIX B
DTC AND BOOK-ENTRY SYSTEM
DTC AND BOOK ENTRY SYSTEM
Portions of the information relating to the Book Entry System under this heading have been furnished by DTC,
but have not been independently verified by the Underwriter or the City. Neither the Underwriter nor the City
makes any representation whatsoever as to the accuracy, adequacy or completeness of such information.
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization"
within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing
corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered
pursuant to the provisions of Section i?A of the Securities Exchange Act of 1934, as 'amended. DTC holds
securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among
Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement
of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. Access to the DTC system is also available to others such
as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable
to DTC and its Participants are on file with the Securities and Exchange Commission.
In September 1999, the Securities and Exchange Commission approved the integration of DTC and National
Securities Clearing Corporation as separate subsidiaries of the Depository Trust and Clearing Corporation
("DTCC'). Through the integration, former owners of DTC (consisting of a number of its Direct Participants, the
New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities
Dealers, Inc.) became part owners of DTCC.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("beneficial owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial owners
will not receive written confirmation from DTC of their purchase, but beneficial owners are expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from
the Direct or Indirect Participants through which the beneficial owners entered into the transaction. Transfers of
ownership interests in the Bonds are to be accomplished by entries made on the books of Participants acting on
behalf of beneficial owners. Beneficial owners will not receive certificates representing their ownership interests
in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of
DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual beneficial owners of
the Bonds; DTC's records reflect only the identity of the Direct Participants to wl~ose accounts such Bonds are
credited, which may or may not be the beneficial owners. The Participants will remain responsible for keeping
account of their holdings on behalf of their customerk.
SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE BONDS, AS NOMINEE OF DTC,
REFERENCES HEREIN TO THE BONDOWNERS OR REGISTERED OWNERS OF THE BONDS SHALL
MEAN CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE BONDS.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed
by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to
time.
Redemption notices shall be sent to Cede & Co. If less than all of the Bonds within a maturity are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such
maturity to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual procedures, DTC mails
an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede &
Co.'s consenting or voting fights to those Direct Participants to whose accounts the Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit Direct
Participants' accounts on the payment date in accordance with their respective holdings shown on DTC's
records unless DTC has reason to believe that it will not receive payment on the payment date. Payments
by Participants to beneficial owners will be governed by standing instructions and customary practices, as
is the case with securities held for the accounts of customers in bearer form or registered in "street name,"
and wilt be the responsibility of such Participant and not of DTC, the Bond Registrar, or the City, subject
to any statutory or regulatory requirements as may be in effect ~'rom time to time. Payment of principal
and interest to DTC is the responsibility of the City or the Bond Registrar. Disbursement of such
payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to
the beneficial owners shall be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its service as securities depository with respect to the Bonds at any time
by giving reasonable notice to City or the Bond Registrar. Under such circumstances, in the event that a
successor securities depository is not obtained, Bond certificates are required to be printed and delivered.
The beneficial owner of each Bond, upon registration of certificates held in the beneficial owner's name,
will become the Registered Owner of that Bond.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a
successor securities depository). In that event, Bond certificates will be printed and delivered.
The City and the Bond Registrar will recognize DTC or its nominee as the Bondowner for all purposes,
including notices and voting. Conveyance of notices and other communications by DTC to Direct~
Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect
Participants to beneficial owners will be governed by arrangements among them, subject to any statutory
or regulatory requirements that may be in effect from time to time.
NEITHER THE CITY NOR THE BOND REGISTRAR WILL HAVE ANY RESPONSIBILITY OR
OBLIGATION TO DTC PARTICIPANTS, OR THE PERSONS FOR WHOM THEY ACT AS
NOMINEES, WITH RESPECT TO THE PAYMENTS TO OR THE PROVIDING OF NOTICE TO
THE DIRECT PARTICIPANTS, THE INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS
OF THE BONDS. THE CITY.CANNOT AND DOES NOT GIVE ANY ASSURANCES THAT DTC,
DIRECT PARTICIPANTS OR OTHERS WILL DISTRIBUTE PAYMENTS OF PRINCIPAL OF OR
INTEREST ON THE BONDS PAID TO DTC OR ITS NOMINEE, AS THE REGISTERED OWNER,
OR ANY NOTICES TO THE BENEFICIAL OWNERS OR THAT THEY WILL DO SO ON A
TIMELY BASIS, NOR THAT DTC W!LL ACT IN A MANNER DESCRIBED IN THIS OFFICIAL
STATEMENT.
Each beneficial oxvner, acting tt'~rough DTC, will have all the rights and privileges of the o,~ership of its
Bond or Bonds and will not be required to act in concert with other beneficial owners of' the Bonds held
by DTC. DTC will forward to the beneficial owners any notices received in respect of their Bonds and
will act in accordance with their instructions with respect thereto.
APPENDIX C
MUNICIPAL BOND INSURANCE POLICY SPECIMEN
FINANCIAL GUARANTY INSURANCE POLICY
MBIA Insurance CorporatiOn
Armonk, New York 10504
Policy No. [NUMBER]
MBIA Insuran~ Corporation (the '~Insttref'), in consideration of the payment of the premium and subject to the terms of this policy, hereby
uncondiuonally and irrgvcx:ably =m~amntees to any owner, as here/m_~er defined, of the foLlowing descn't:~ obligations, the full and complete pa?nent
required to be mate by or on l:elml~'ofthe Issuer to [PAYING AGENT~'RUSTEE] or its successor (the '~Paying Agene3 of an amount equal to (i) the
principal of (either at the smnxi m~nwity or by any advancement of manrdty pmsuam to a mandatory sinking ~mad paymerrt) and interest o~_ the
Obligations (as that term is defined below) as such payments rOmll become due ~ ~}mll not be so paid (except that in the event of ar~.- accelemli~n of
the dm clam of such principal by reason of m=ndatory or optional redemption or acceleralion resulting fir~n der~nk or otherwise, other than any
advancement of'maturity pummm to a mandatory ~nk-ing fired paymera, the payments =qu~xeed hereby shall ~ mn8~- in such amounts and at such
times as such .tmyments of principal would have hum due had there not ~ any such accelera~on); and (ii) the reimhu-sement of any such
wh/ch is subsequently recovered from any owner pmstmnt to a ~-ml judgmeax by a court of co~ jurisdiction tim such .tmyment constitmes an
avoidable pref=rence to such owner within the memaing of any. applicable bankruptcy law. The mounts nfferred to in cla~tses (i) and (i/) of the
gaR]
[LEGAL NAME OF ISSUE]
Upon receipt of Ir, lc'phonic or telegraphic notice, such notice ~ confirmed in wrking by regLe,.emd or certified mail, or upon rece/pr of
written noti~ by regismred or ~wtified mn~ lay the Insurer from the Paying Agent or any owner of an Obligation the .tmyment of an Insured Amoum
for which is then due, that such requited payment lms not been nmrte, the Insurer on the due date of such .payment or within one bu.~.ess clay. ~r
receipt of noti~ of such nonpayme~ whichever is liner, mil make a deposit offiaxts, in an accotml with State Street Bank and Trust Company, N.A,
in New York, New York, or its successor, sufficient for the payment of any tach In.re_red Amonntq which axe then due. Upon presmms~ent and
surrender of such Obligatiom or pmsentm~ of suctr other proof of ownership of the Obligations,': to~her with any appropriate instrumenm of
assignment to evidence the assignm~ of the Instu~ Amounts due on the Obligations as are paid lay the Insurer, and appmpriam inslrum~ to effect
'2xs '~VFctnrmem of th: ~ as agent for rack owner~ ::g ~e Obi/~o=_~5ons in .any. l~egml p~..~ing related to paying-mt cf In~--ed~ ' g~our~s on the
C.~iigaaons, .mci,, ;xmmnnems ~ in a £orm m~r~ctory ro Sram Street Bank and Trust Core,my, NA., State Street Bank -and Trust Company, N.A.
shall disbume to such owners, or the Paying Agent payment of the Insured Amotmls due on tach Obligations, less any amount held by the Paying
Agm:r for O,e pa~?me~z of =mc~ 2m-m--~i Amou,ms and Ie~liy ~i':.nhie thelllfor. Th~ policy doe8 not ,:nmre ~in~ 10~ C~ a~ prgpaylIlent p~emium
which may at any l~rne be .imyable with ~ to any Obligation
As used hereto, the term "owner" .~h,l! mean the registm~ owner of any Obligation as indicaled in the books m~intninec[ by the Paying Agent, the
Issuer, or any designee of the Issuer for such propose. The term owner ~hnlI not mctude the Issum- or any party whose agreement with the Issuer
constitutes the nnr~erlying setm~ for the Obligations.
Any. service oflXOCeSS on the Irkmrm' may be made to the Instuer'at its offices located at 113 King Street Armonk, New York 10504 and such service
ofptlX:e~S ~ 1~ valid and 'oinditlg.
This policy is non-canmltable for any reasor~ The pm on this policy is not refim~le for any. reason including the ~ prior to tunturi .ty of
the Obligations.
IN WrrlCESS WHEREOF, the Instaer has mused this policy to be e,,ex-taed in facm~e on ~ behalf by its duty a~onzed offsets, this ['DAY1 day.
of [MONT&
MBIA Insurance Corporation
s'rD-R-6
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO. 4756
AN ORDINANCE of the City of Bremerton, Washington, relating
to the incurrence of indebtedness; providing for the sale and
issuance of $3,100,000 principal amount limited tax general
obligation bonds, 2001, to pay part of the costs of constructing and
equipping a new clubhouse facility and related facilities at the
City's Gold Mountain Golf Complex; providing for the date,
denominations, form, terms, registration privileges, maturity,
interest rates and covenants of the bonds; establishing a debt
service account for the bonds; and providing for the sale and
delivery of such bonds to Banc of America Securities LLC, Seattle,
Washington
WHEREAS, the City of Bremerton (the "City") currently owns and operates the
City's Gold Mountain Golf Complex (the "Golf Complex"), which contains two public
golf courses; and
WHEREAS, the current clubhouse facility at the Golf Complex is an outdated
facility which is inadequate to meet the needs of the golfers and other users of the Golf
Complex; and
WHEREAS, the City Council has previously approved the design, construction
and equipping of a new clubhouse and other related facilities at the Golf COmplex (the
"Project"); and
WHEREAS, pursuant to chapter 39.53 RCW, the City is authorized to sell and
issue, without an election, limited tax general obligation bonds of the City to finance all
or part of the costs of such Project; and
WHEREAS, the incurrence of such indebtedness by the City will not cause the
total indebtedness of the City to be incurred without the assent of the voters of the City to
exceed the limitations set forth in Chapter 39.36 RCW; and
WHEREAS, the City deems it necessary and advisable that $3,100,000 in
principal amount of Bonds now be sold and issued to provide funds for the Project; and
WHEREAS, Bane of America Securities LLC has offered, by way of the
Purchase Agreement, to purchase such limited tax general obligation bonds upon .the
terms and conditions hereinafter set forth; NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS:
Custodian and the use of a nominee for the Custodian; and the term "Custodian," as used
herein, includes any party operating any such subsystem.
"Depositories" means the following registered securities depositories: (a) The
Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; Co)
Midwest Securities Trust Company, Capital Structures-Call Notification, 440 South
LaSalle Street, Chicago, Illinois 60605; and (c) Philadelphia Depository Trust Company,
Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103,
Attention: Bond Department.
"Government Obligations" means "government obligations," as defined in
Chapter 39.53 RCW, as now in existence or hereafter amended.
"Letter of Representations" means the Blanket Issuer Letter of Representations,
dated November 19, 1997, between the City and the Custodian pertaining to the payment
of the Bonds and the "book-entry" system for evidencing the beneficial ownership of the
Bonds prior to ~Jhe Book-Entry Termination Date.
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means a nationally recognized municipal securities information
repository designated by the SEC.
"Ordinance" means this Ordinance No. 4756 of the City.
"Owner" means the person named as the registered owner of a Bond on the Bond
Register.
"Project" means the design, construction and equipping of a new clubhouse and
related facilities, including, but not limited to, landscaping and parking.
"Preliminary Official Statement" means the Preliminary Official Statement
pertaining to th, e Bonds, dated February 13, 2001.
"Purchase Agreement" means the Bond Purchase Agreement for the Bonds by
and between the City and the Purchaser, which written Purchase Agreement is on file
with the City Clerk and is incorporated herein by this reference.
"Purchaser" means Banc of America Securities LLC.
"RCW" means the Revised Code of Washington, as amended.
"Registrar" means the fiscal agency of the State (as of the date of Closing, The
Bank of New York), which fiscal agency is appointed from time to time by the State
Finance Committee pursuant to chapter 43.80 RCW.
"Rule" means SEC Rule 15c2-12.
"SEC" means the United States Securities and Exchange Commission.
"SIX)" means a state information depository.
"State" means the State of Washington.
Section 2. Purpose and Description of Bonds. The City authorizes the sale and
issuance of its "Limited Tax General Obligation Bonds, 2001" for the purpose of paying
part' of the costs of the Project and to pay certain "incidental costs and costs related to the
sale and issuance" (as defined in RCW 39.46.070) of the Bonds.
The Bonds shall be in the aggregate principal amount of $3,100,000; shall be
dated March 1,2001; shall be issued in fully registered form as to both principal and
interest; shall be in the denomination of $5,000 each or any integral multiple thereof
within a single maturity, shall be numbered separately in such manner and with any
additional designation as the Registrar deems necessary for purposes of identification;
and; shall bearlinterest at the rates; and shall mature on the dates and in the principal
amounts, all as set forth below:
4
Maturity Dates
(December 1) Principal Amounts Interest Rates
2001 $ 75,000 4.125%
2002 105,000 4.125
2003 110,000 4.125
2004 115,000 4.125
2005 120,000 4.125
2006 125,000 4.125
2007 130,000 4.125
2008 135,000 4.200
2009. 140,000 4.300
2010 145,000 4.400
2011 155,000 4.400
2012 160,000 4.550
2013 170,000 4.650
2014 175,000 4.750
2015 185,000 4.850
2016 190,000 4.900
2917 200,000 4.950
2018 210,000 5.000
2019 220,000 5.050
2020 235,000 5. 100
Bonds shall bear interest (computed on the basis of a 360-day year of twelve
months) from their date or from the most recent interest payment date to which
been paid or duly provided for, whichever is later, payable on June 1,2001,
semiannually thereafter on December 1 and June 1 of each year to the maturity or
redemption thereof. If any Bond is not paid upon proper presentment at its
date, the City shall have the obligation to pay interest at the same rate from and
maturity date until such Bond, both principal and interest, is paid in full.
Bonds shall be negotiable instruments to the extent provided by
8-102 and RCW 62A. 8-105.
the date of issue of the Bonds, all Bonds maturing in the same maturity year
issued in the form of a single certificate, which certificate shall be registered in
the name of the Custodian or its nominee, and delivered to the Custodian. The Custodian
shall hold each such Bond certificate in fully immobilized form for the benefit of the
Beneficial Owners pursuant to the Letter of Representations until the earliest to occur of
either (1) the date of maturity of the Bonds evidenced by such certificate, at which time
the Custodian shall surrender such certificate to the Registrar for payment of the principal
of and interest on such Bonds coming due on such date, and the cancellation thereof~
(2) the Book-Entry Termination Date; or (3) the date the City determines to utilize a new
Custodian for the Bonds, at which time the old Custodian shall (provided the City is not
then in default of any payment then due on the outstanding Bonds) surrender the
immobilized certificates to the Registrar for transfer to the new Custodian and
cancellation as herein provided.
For so long as any outstanding Bonds are registered in the name of the Custodian
or its nominee and held by the Custodian in fully immobilized form as described in this
Section 2, the fights of the Beneficial Owners shall be evidenced solely by an electronic
and/or manual Entry made from time to time on the records established and maintained by
the Custodian in accordance with the Letter of Representations, and no certificates
evidencing such Bonds shall be issued and registered in the name of any Beneficial
Owner or such Beneficial Owner's nominee.
The City may terminate the "book-entry" system of registering ownership of the
Bonds at any time (provided the City is not then in default of any payment then due on
the outstanding Bonds) by delivering to the Registrar: (a) a written request that it issue
and deliver Bond certificates to each Beneficial Owner or such Beneficial Owner's
nominee on the. Book-Entry Termination Date; (b) a list identifying the Beneficial
6
Owners as to both name and address; and (¢) a supply of Bond certificates, if necessary
for such purpose. Upon surrender to the Registrar of the immobilized certificates
evidencing all of the then outstanding Bonds, the Registrar shall issue and deliver new
certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent,
naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner
thereof. Such certificates may be in any integral multiple of $5,000 within a single
maturity. Following such issuance, the Owners of such Bonds may transfer and
exchange such Bonds in accordance with Section 10 hereof.
Neither. the City nor the Registrar shall have at any time any responsibility or
liability to any Beneficial Owner of Bonds or to any other person for any error, omission,
action or failure to act on the part of the Custodian with respect to payment, when due, to
the Beneficial Owner of the principal and interest on the Bonds, proper recording of
beneficial ownership of Bonds, proper transfers of such beneficial ownership, or any
notices to Beneficial Owners or any other matter pertaining to the Bonds.
Section 3. Place, Manner and Medium of Payment. Both the principal of and
interest on the Bonds shall be payable in lawful money of the United States of America.
Prior to the Book-Entry Termination Date, the principal and interest on the Bonds shall
be paid by the Registrar to the Custodian as the Owner thereof, for the benefit of the
Beneficial Own, ers thereof, in accordance with the Letter of Representations.
From and aider the Book-Entry Termination Date, interest on the Bonds shall be
paid by check or draft mailed on or before the interest payment date, to the persons
identified as the Owners on the fifteenth day of the month preceding the interest payment
date at the addresses shown for the Owners on the Bond Register. From and after the
Book-Entry Termination Date, principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners at the principal corporate trust office of the
Registrar.
Section 4. Optional Redemption; Partial Redemption; Notice; Open Market
Purchase: Cancellation. The Bonds maturing in the years 2001 through 2011, inclusive,
shall not be subject to redemption prior to maturity. The Bonds maturing on or at~er
December 1, 2012 shall be subject to redemption prior to maturity at the option of the
City, in whole or in part on any date (maturities to be selected by the City and by lot
within a maturity in such manner as the Registrar shall determine), commencing on
December 1, 2011, at a price of par plus accrued interest to the date of redemption.
Any Bond in the principal amount of greater than $5,000 may be partially
redeemed in any integral multiple of $5,000. Prior to the Book-Entry Termination Date,
Bonds shall be partially redeemed in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, in the event of a partial redemption of
a Bond, upon surrender of such Bond at the principal corporate trust office of the
Registrar, a new Bond or Bonds (at the option of the Owner) of the same maturity and
interest rate and in the aggregate principal amount remaining unredeemed shall be
authenticated and delivered to the Owner, without charge to the Owner therefor, in any
denomination authorized by this Ordinance and selected by the Owner.
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be
given, notice of a call for redemption of any Bonds to the Custodian, as the Owner
thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of
Representations. From and after the Book-Entry Termination Date, notice of any such
8
intended redemption shall be given by or on behalf of the City not less than 30 nor more
than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to
the Owner of each Bond to be redeemed at the address appearing on the Bond Register on
the day the notice is given. The requirements of this section shall be deemed to be
complied with when notice is mailed as herein provided, whether or not it is actually
received by the Owner. In addition, such redemption notice shall be mailed within the
same time period, postage prepaid, to the Depositories, to each NRMSIR and to MBIA
Insurance Corporation or their respective successors, but such mailings shall not be a
condition precedent to the redemption of such Bonds.
If such notice to the Owners shall have been given and the City shall have set
aside sufficient money for the payment of all Bonds called for redemption on the date
fixed for redemption, the Bonds so called shall cease to accrue interest after such
redemption date, and all such Bonds shall be deemed not to be outstanding hereunder for
any purpose, except that the Owners of such Bonds shall be entitled to receive payment
of the redemption price and interest accrued on the principal of the Bonds to the
redemption date from the money set aside for such purpose.
The City reserves the right to purchase any or all of the Bonds on the open market
at any time and at any price.
All Bonds purchased or redeemed by the City shall be surrendered to the
Registrar for cancellation.
Section 5. Debt Limit Not Exceeded. The City finds and covenants that the
Bonds are issued within all constitutional and statutory debt limitations presently
applicable to the City.
Section 6. Pledge of Full Faith, Credit and Resources. The Bonds are limited tax
general obligations of the City. The City hereby irrevocably covenants to include in its
budgets and to make annual levies of taxes within the constitutional and statutory tax
limitations provided by law without a vote upon all property within the City subject to
taxation in amounts which, together with any other money legally available therefor, shall
be sufficient to pay the principal and interest on the Bonds as the same shall become due.
The City hereby irrevocably pledges its full faith, credit and resources to the annual levy
and collection of such taxes and for the prompt payment of such principal and interest.
Further, the City pledges to the payment of principal of and interest on the Bonds the
revenue generated by green fees paid at the Golf Complex, less operating and
maintenance expenses of the Golf Complex.
The City hereby irrevocably covenants that the annual tax provided for herein to
be levied for the payment of the principal of and interest onthe Bonds shall be within and
as a part of the tax levy permitted the City without a vote of the people and that a
sufficient portion of each such annual tax levy to be made so long as the Bonds are
outstanding, together with any other money legally available therefor, shall be and is
hereby set aside, pledged and appropriated for the payment of the principal of and interest
on the Bonds as the same shall become due.
Section 7. Form of Bonds. The Bonds shall be typewritten, printed or
lithographed on good bond paper in a form consistent with this ordinance and
Washington law.
10
Section 8. Execution of Bonds. The Bonds shall be signed on behalf of the City
with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have
the seal of the City impressed or a facsimile thereof imprinted thereon.
In case either or both of the officers who shall have executed any Bond shall
cease to be such officer or officers of the City before the Bond so signed shall have been
authenticated or delivered by the Registrar or issued by the City, such Bond nevertheless
may be authenticated, delivered and issued and upon such authentication, delivery and
· issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond also may be signed and attested on
behalf of the City by such persons as at the actual date of execution of such Bond shall be
the proper officers of the City although at the original date of such Bond such persons
were not such officers of the City.
Section 9. Authentication and Delivery of Bonds by Registrar. The Registrar is
authorized and, directed, on behalf of the City, to authenticate and deliver Bonds initially
issued or transferred or exchanged in accordance with the provisions of such Bonds and
this Ordinance.
Only such Bonds as shall bear thereon a "Certificate of Authentication", manually
executed by an authorized signatory of the Registrar shall be valid or obligatory for any
purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication
shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this Ordinance.
The Registrar shall be responsible for its representations contained in the
Certificate of Authentication on the Bonds.
11
Section 10. Registration; Transfer and Exchange. The Registrar shall keep, or
cause to be kept, the Bond Register at its principal corporate trust office.
The City and the Registrar, each in its discretion, may deem and treat the Owner
of each Bond as the absolute owner thereof for all purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall
be made only as described in Section 3 hereof, but such registration may be transferred as
herein provided. All such payments made as provided in Section 3 hereof shall be valid
and shall satisfiy and discharge the liability of the City upon such Bond to the extent of
the amount or amounts so paid.
The registered ownership of any Bond may be transferred. Prior to the Book-
Entry Termination Date, the beneficial ownership of the Bonds may only be transferred
on the records established and maintained by the Custodian. On and after the Book-Entry
Termination Date, no transfer of any Bond shall be valid unless it is surrendered at any
principal corporate trust office of the Registrar, with the assignment form appearing on
such Bond duly executed by the Owner or such Owner's duly authorized agent, in a
manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cahcel the
surrendered Bond and shall authenticate and deliver, without charge to the Owner or
transferee therefor (other than any governmental fees or taxes payable on account of such
transfer), a new Bond or Bonds (at the option of the new Owner), of the same maturity
and interest rate and for the same aggregate principal amount, in any authorized
denomination, naming as Owner the person or persons listed as the assignee on the
assignment form appearing on the surrendered Bond, in exchange for such surrendered
and cancelled Bond.
12
5. Substitution of credit or liquidity providers, or their failure to
perform;
6. Adverse tax opinions or events affecting the tax-exempt status of
the Bonds;
7. Modifications to rights of the Owners of the Bonds;
$. Optional redemptions of the Bonds;
9. Defeasances of the Bonds;
10. Release, substitution or sale of property securing repayment of the
Bonds; and
11. Rating changes.
After the issuance of the Bonds, so long as the interests of the Owners or
Beneficial Owners of the Bonds will not be materially impaired thereby, as determined
by a party unaffiliated with the City (including, without limitation, a trustee for the
Owners, nationally recognized bond counsel or other counsel familiar with the federal
securities law), or pursuant to a favorable "no-action letter" issued by the SEC, this
Section 22 may-only be amended in connection with any change in legal requirements,
change in law, or change in the identity, nature or status of the obligated person, or type
of business conducted, and only in such a manner that the undertaking of the City, as so
amended, would have complied with the requirements of the Rule at the time of the
primary offering, at~er taking into account any amendments or interpretations of the
Rule, as well as any change in circumstances.
The City's obligations to provide Financial Information and notices of certain
events shall terminate without amendment upon the defeasance, prior redemption or
20
payment in full of all of the then outstanding Bonds. This Section 22 or any provision
hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized
bond counsel or other counsel familiar with the federal securities laws to the effect that
those portions of the Rule which require this Section 22 or any such provision are invalid,
have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies
and provides the SID, if any, and either the MSRB or each then existing NRMSIR with
copies of such opinion.
The right of each Owner and Beneficial Owner of Bonds to enforce the provisions
of this Section 22 shall be limited to the right to obtain specific enforcement of the City's
obligations under this Section 22, and any failure by the City to comply with the
provisions of this undertaking shall not be a default with respect to the Bonds under this
Ordinance.
The City Treasurer is authorized and directed to take such further action on behalf
of the City as may be necessary, appropriate or convenient to carry out the requirements
of this Section 22.
Section 23. Contract; Severability. The covenants contained in this ordinance
shall constitute a contract between the City and the Owners of each and every Bond. The
City unconditionally covenants that it will keep and perform all of the covenants of the
Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall
be declared unconstitutional or invalid for any reason, such decision shall not affect the
validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance
and the Bonds shall be construed and enforced as if such unconstitutional or invalid
provision had not been contained herein.
21
Section 24. Effective Date. This Ordinance shall take effect and be in full force
ten days after passage and publication of an approved summary, consisting of the title.
APPROVED by the City Council of the City of Bremerton, Washington, the 14th
day of'February, 2001.
PASSED by the City Council of the City of Bremerton, Washington, this 21 st day
of February, 2001.
JOHN LAW, Council President
APPROVED this .... day of February, 2001.
LYNN HORTON, Mayor
ATTEST:
Kathleen McCluskey, City Clerk
APPROVED AS TO FORM:
By.
Judith Andrews, Bond Counsel
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO. 4756
22
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: ORDINANCE # , FOR AGENDA OF: February 21, 2001
VACATING THE ALLEY LOCATED ORIGINATING DEPT: PW&U Engineering Div...,
BETWEEN NAVAL AND ROOSEVELT ORIGINATOR Jennifer Strehler, City Engineer
AVENUES AND BETWEEN 6T~ AND 7TM STREETS. DATE SUBMITTED: February 12, 2001
2. CLEARAI~CES: (comment on bac~'~)/_~ 3. EXI-IIBITS
Director, Public Works/Utilities v-.i;/v ..~z',a~, / A. Ordinance #
~,q-City Attorney 'k~~'~._~-- B. Site Map.
Director, Community Development l~e'M,t,t.~t0_ .., C. Staff Report.
Council Budget & Finance Committee
Operations Committee F_~.~,~--~ ~"~v.~
ENDORSEMENT ,X INFORMATION APPROVED BY COUNCIL~IDENT FOR SUBMITTAL
MAYOR ~ -~-¢/-~./~ COUNCIL PRESIDEI~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The City has received a petition from S.E. Grainger Development Group to vacate the alley located between
Naval and Roosevelt Avenues and between 6th and 7th Streets. A hearing date of February 21,2001 was set by
the City Council on January 24, 2001. This right-of-way consists of a paved alley that abuts the applicant's
properties and is utilized as access to those properties. The vacation is being requested by S.E. Grainger
Development Group to develop the site for construction of a new retail outlet using the entire block. Posting of the
hearing notices and mailings to the adjacent property owners has been completed in accordance with State law and
the Bremerton Municipal Code. This is a Class II right-of-way and the petitioner has paid the required
compensation in the amount of $11,006.42. Specific items for City Council consideration are outlined in the Staff
Report. The request before the City Council is to approve, disapprove, or modify this vacation of the alley located
between Naval and Roosevelt Avenues and between 6th and 7t~ Streets.
8. RECOMMENDATION:
A. Motion to approve the attached Ordinance, vacating the alley located between Naval and Roosevelt Avenues
and between 6th and 7th Streets, on first reading.
B. Motion to pass Ordinance # , vacating the alley located between Naval and Roosevelt Avenues
and between 6~ and 7t~ Streets, on second reading.
9. RESPONSIBLE OFFICIAL: City Engineer
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OFACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE DATE:
11. AGENDA BILL NO: 0)--
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The area will remain right-of-way, which may restrict improvements of the area.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER
RESOURCES:
Staffing: No impact.
Budget: No impact
Facilities/Equipment: No impact
7. RESEARCH SOURCES
BMC 11.20 Vacation of Public Rights-of- Way
RCW 35. 79 Streets
ab, Agenda Bills 2001, S.E. Grainger Development Group, ROW Vac
Filed for Record at Request of:
When Recorded Return to:
Name: Bremerton City Clerk
Address: 239 Fourth Street
Bremerton, WA 98337
Document Title: Ordinance No.
Reference Number of Document Assigned or Released: Not Applicable
Grantor's Name: City of Bremerton
Grantee's Name: Not Applicable
Tax Parcel #: Not Applicable.
Abbreviated Legal Description: NE QTR. OF SW QTR. SEC. 14, T. 24 N., R. 1 E.,
W.M.
ORDINANCE #
AN ORDINANCE Vacating the alley located betWeen Naval
and Roosevelt Avenues and between 6th and 7th Streets.
WHEREAS, S.E. Grainger Development Group has petitioned to vacate this
developed right-of-way; and
WHEREAS, notice has been posted and published according to law; and
WHEREAS, the City Council finds that the portion of the right-of-way set forth
herein is not needed for present or future use and should be vacated to allow the
abutting property owners to maintain the parcel, now therefore,
THE CITY OF BREMERTON DOES HEREBY ORDAIN:
Section 1. Vacation. The following rights-of-way are hereby vacated to the
adjoining property owners.
ALL THAT PORTION OF THE ALLEY LYING WITHIN BLOCK 9 OF UNION HIGH
SCHOOL ADDITION TO THE CITIES OF BREMERTON AND CHARLESTON, AS PER
Ordinance Vacating the Alley between Naval and Roosevelt Avenues
Page 1
PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 85, RECORDS OF KITSAP
COUNTY AUDITOR.
SITUATE IN THE CITY OF BREMERTON, COUNTY OF KITSAP, STATE OF
WASHINGTON.
Section 2. Reservation of Easements. An easement is reserved for Cascade
Natural Gas, Puget Sound Energy, and Q West for operation, maintenance and repair
of gas, power, telephone and cable lines over, under and upon the following described
real property:
ALL THAT PORTION OF THE ALLEY LYING WITHIN BLOCK 9 OF UNION HIGH
SCHOOL ADDITION TO THE CITIES OF BREMERTON AND CHARLESTON, AS PER
PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 85, RECORDS OF KITSAP
COUNTY AUDITOR.
SITUATE IN THE CITY OF BREMERTON, COUNTY OF KITSAP, STATE OF
WASHINGTON.
Section 3. Effective date. This vacation shall become effective ten (10) days
from passage and publication.
APPROVED by the City Council of the City of Bremerton this day of
,2001.
PASSED by the City Council of the City of Bremerton this day of
,2001.
JOHN E. LAW, Council President
APPROVED this day of ,2001.
LYNN HORTON, Mayor
ATTEST:
KATHLEEN McCLUSKEY, City Clerk
Ordinance Vacating the Alley between Naval and Roosevelt Avenues
Page 2
~ 2020 '-" ~ e°
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STREET VACATION REQUEST
ALLEY BE'I'WEEN NAVAL AND ROOSEVELT AVENUES AND BETWEEN 6TH AND
7TM STREETS
ENGINEERING STAFF REPORT
CITY COUNCIL HEARING DATE: To be determined
PREPARED BY: Gunnar Fridriksson
SUMMARY
Applicants: S.E. Grainger Development Group, L.L.C.
Attn: Scott Grainger
1400 112th Avenue SE, Suite 100
Bellevue, WA 98004
Location: Alley located between Naval and Roosevelt Avenues and between 6th and
7th Streets
A. Attachment: Vicinity Map and Vacation Area Map
BACKGROUND
The applicants have petitioned the City of Bremerton to vacate the alley that abuts their
property (approximately 3,266 sf). This alley is paved and utilized as access to the
applicant properties.
The lead on this application is a development company, which seeks to construct a new
retail outlet using the entire block. All existing structures on the block are to be
demolished to create a developable site. See the attached application for a sketch of
the subject area.
RIGHT-OF-WAY OONDITIONS
· Functional Classification Local Access
· Existing R-O-W Width 12 feet
· Proposed R-O-WWidth N/A
· Pavement Width 12 feet
· Surface Type Asphalt
· Curb and Gutter N/A
· Sidewalks N/A
November 8, 2000
Alley between 6th and 7th Streets and Naval and Roosevelt Avenues
Page 1 of 5
HEARING CONSIDERATIONS
BMC 11.20.120 sets forth issues that the City Council needs to determine at the
conclusion of the Vacation Hearing. These issues and the staff position are:
1. Whether the street, alley or portion thereof is no longer required for public use
and vacation of the described portion will better serve the public good.
Staff Position:
In conjuction with the applicant's proposed development, the alley will no longer
be required for public use. Given the existing infrastructure, it is unlikely that the
, alley will be utilized for any other purpose.
2. Whether the vacation is consistent with the City Comprehensive Plan.
Staff Position:
The proposed vacation does not conflict with the Comprehensive Plan.
3. Whether continued use of the proposed vacation as a public way is not of
such public benefit as to justify the costs of maintenance.
Staff Position:
Continued use and maintenance of the proposed vacation has no public benefit.
4. Whether substitution of a new and different thoroughfare would be more
useful to the public.
Staff Position:
Substitution of a new and different thoroughfare would not be useful to the public.
5. Whether conditions may so change in the future as to provide a greater public
use or need than presently exists.
Staff Position:
There is no anticipated future public use.
6. Whether objections to the proposed vacation are made by owners of private
property abutting the same.
Staff Position:
There are no objections. All abutting property owners have signed the petition
for the proposed vacation.
November 8, 2000
Alley between 6th and 7th Streets and Naval and Roosevelt Avenues
Page 2 of 5
SHORELINE ACCESS
This portion of right-of-way does not provide shoreline access.
UTILITIES
All private utility companies have been contacted. Puget Sound Energy, Cascade
Natural Gas and Qwest will retain easements. Utilities easements are to be reserved
for the existing City sewer and storm utilities. All easements for existing utilities will be
released upon redevelopment of the surrounding properties and alley and arrangements
made for the utility relocations.
SUFFICIENCY OF SIGNATURES
The request for the vacation was made by more than two thirds (on a front footage
basis) of the property owners abutting the property to be vacated.
COMPENSATION
This is a Class II right-of-way as defined in Ordinance 4664. This type of right-of-way is
limited to a public easement or right of use which has substantial public improvements
in any portion of the right-of-way. The City shall be compensated .for 50 percent of the
assessed value per square foot of the adjacent properties. Compensation amounts to
$11,006.42.
STAFF COMMENTS
Department of Community Development, Police, Fire and Engineering supports this
vacation.
City Attorney wishes to be assured the utility easements will be properly reserved.
Staff recommends that this Street Vacation be approved as requested without
modification.
November 8, 2000
Alley between 6th and 7th Streets and Naval and Roosevelt Avenues
Page 3 of 5 ~_///,~
Standing on Naval Avenue looking easterly down the alley towards Roosevelt Avenue.
November 8, 2000
Alley between 6Ih and 7th Streets and Naval and Roosevelt Avenues
Page 4 of 5
¥/
Standing on Roosevelt Avenue looking westerly down the alley towards Naval Avenue.
November 8, 2000,
Alley between 6th and 7th Streets and Naval and Roo~velt Avenues
Page 5 of 5
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: ORDINANCE # , FOR AGENDA OF: February 21, 2001
VACATING APPROXIMATELY 210 FEET ORIGINATING DEPT: PW&U Engineering Div.
OF YANTIC AVENUE SOUTH OF 1sT STREET ORIGINATOR: Jennifer Strehler, City Engineer
AND THE ALLEY LYING SOUTH OF 1sT STREET DATE SUBMITTED: February 12, 2001
BETWEEN YANTIC AND HARTFORD AVENUES.
2. CLEARANCES: (comment on back])~ne~., .s~....~ 3. EXHIBITS
Director, Public Works/Utilities ~ ,//.~t:~'o~_. ~.. ~e #
City Attorney _t~~ B. Site Map. '
Director, Community Development - ~ 0'//~,(~*.-¢/0, ..--2 C. StaffReport.
Council Budget & Finance Committee ~_~~ ·
Operations Committee ./.d.¢~.~ ~_~
ENDORSEMENT )(' INFOgM~TION APPROVED BY COUNCIL~'~NT FO~ITTAL:
MAYOR ~~j--~. ~ (~ COUNCIL PRESDENT k,.._,~'~-- ~'.,.,~., - ,. j
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUI~CIL ACTION:
The City has initiated the vacation of approximately 210 feet of Yantic Avenue south of 1st Street and the alley
lying south of 1st Street and between Yantic and Hartford Avenues. A heating date of February 21, 2001 was
set by the City Council on January 31, 2001. These right-of-ways have not been developed and the terrain
consists of hilly, steep slopes that are not needed for public use. Posting of the heating notices and mailing to
the adjacent property owners has been completed in accordance with State law and the Bremerton Municipal
Code. Less than 50 percent of the abutting property owners have submitted written objections to the City
Clerk's office. This is a Class III tight-of-way and compensation is not required. The request before the City
Council is to approve, disapprove, or modify this vacation of approximately 210 feet of Yantic Avenue south of
1 st Street and the alley lying south of 1't Street and between Yantic and Hartford Avenues.
8. RECOMMENDATION:
A. Motion to approve the attached Ordinance, vacating approximately 210 feet of Yantic Avenue south of 1st
Street and the alley lying south of 1st Street and between Yantic and Hartford Avenues, on first reading.
B. Motion to approve Ordinance # ., vacating approximately 210 feet of Yantic Avenue south of
1st Street and the alley lying south of 1st Street and between Yantic and Hartford Avenues, on second
reading.
9. RESPONSIBLE OFFICIAL: City Engineer
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE DATE:
11. AOENDA BILL NO: 01- <q;
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The area will remain right-of-way and will continue to be managed by the City.
6. IMPACT ON STAFFING, BUDGETS, FACII,ITIES, EQUIPMENT OR OTHER
RESOURCES:
Staffing: No impact.
Budget: No impact
Facilities/Equipment: No impact
7. RESEARCH SOURCES
BMC 11.20 Vacation of Public Rights-of- Way
RCW 35. 79 Streets
ab, Agenda Bills 2001, Yantic Ave, ROW Vac
Filed for Record at Request of:
When Recorded Return to:
Name: Bremerton City Clerk
Address: 239 Fourth Street
Bremerton, WA 98337
Document Title: Ordinance No.
Reference Number of Document Assigned or Released: Not Applicable
Grantor's Name: City of Bremerton
Grantee's Name: Not Applicable
Tax Parcel #: Not Applicable.
Abbreviated Legal Description: NW QTR. NE QTR. SEC. 22, T 24 N., R .1 E., W.M.
ORDINANCE #
AN ORDINANCE Vacating approximately 210 feet of Yantic
Avenue south of 1st Street and the alley lying south of 1st
Street and between Yantic and Hartford Avenues.
WHEREAS, the City of Bremerto~ initiated the vacation process of this
undeveloped right-of-way; and
WHEREAS, notice has been posted and published according to law; and
WHEREAS, the City Council finds that the portion of the right-of-way set forth
herein is not needed for present or future use and should be vacated to allow the
abutting property owners to maintain the parcel, now therefore,
THE CITY OF BREMERTON DOES HEREBY ORDAIN:
Section 1. Vacation. The following rights-of-way are hereby vacated to the
adjoining property owners.
A PORTION OF THE PLAT OF CHARLESTON NAVY VIEW ADDITION, AS
RECORDED IN VOLUME 4 OF PLATS, PAGE 81, RECORDS OF KITSAP COUNTY,
WASHINGTON, SITUATE IN THE NORTHWEST QUARTER OF THE NORTHEAST
QUARTER OF SECTION 22, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M. KITSAP
COUNTY, WASHINGTON, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
Ordinance Vacating A Portion of Yantic Avenue
Page 1
THAT PORTION OF YANTIC AVENUE (YANTIC STREET PER PLAT) FRONTING
LOTS 46 THROUGH 52, INCLUSIVE, IN BLOCK 3 OF SAID PLAT, AND;
THAT PORTION OF THE ALLEY FRONTING LOTS 8 THROUGH 45, INCLUSIVE, IN
BLOCK 3 OF SAID PLAT.
Section 2. Reservation of Easements.
a. An easement is reserved for the City of Bremerton, Public Works and Utilities
Department for operation, maintenance and repair of water lines over, under and upon
the following real property:
A PORTION OF THE PLAT OF CHARLESTON NAVY VIEW ADDITION, AS
RECORDED IN VOLUME 4 OF PLATS, PAGE 81, RECORDS OF KITSAP COUNTY,
WASHINGTON, SITUATE IN THE NORTHWEST QUARTER OF THE NORTHEAST
QUARTER OF SECTION 22, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M. KITSAP
COUNTY, WASHINGTON, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
THAT PORTION OF YANTIC AVENUE (YANTIC STREET PER PLAT) FRONTING
LOTS 46 THROUGH 52, INCLUSIVE, IN BLOCK 3 OF SAID PLAT, AND;
b. An easement is reserved for Cascade Natural Gas and Puget Sound Energy for
operation, maintenance and repair of gas and power lines over, under and upon the
following described real property:
A PORTION OF THE PLAT OF CHARLESTON NAVY VIEW ADDITION, AS
RECORDED IN VOLUME 4 OF PLATS, PAGE 81, RECORDS OF KITSAP COUNTY,
WASHINGTON, SITUATE IN THE NORTHWEST QUARTER OF THE NORTHEAST
QUARTER OF SECTION 22, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M. KITSAP
COUNTY, WASHINGTON, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
THAT PORTION OF YANTIC AVENUE (YANTIC STREET PER PLAT) FRONTING
LOTS 46 THROUGH 52, INCLUSIVE, IN BLOCK 3 OF SAID PLAT, AND;
THAT PORTION OF THE ALLEY FRONTING LOTS 8 THROUGH 45, INCLUSIVE, IN
BLOCK 3 OF SAID PLAT.
Section 3. Effective date. This vacation shall become effective ten (10) days
from passage and publication.
APPROVED by the City Council of the City of Bremerton this day of
,2001.
Ordinance Vacating A Portion of Yantic Avenue
Page 2
PASSED by the City Council of the City of Bremerton this day of
,2001.
JOHN E. LAW, Council President
APPROVED this day of ,2001.
LYNN HORTON, Mayor
ATTEST:
KATHLEEN McCLUSKEY, City Clerk
Ordinance Vacating A Portion of Yantic Avenue
Page 3
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STREET VACATION REQUEST
YANTIC AVENUE & ALLEY
ENGINEERING STAFF REPORT
CITY COUNCIL HEARING DATE: 21 February, 2001
PREPARED BY: Gunnar Fridriksson
SUMMARY
A. Applicants: City of Bremerton
3027 Olympus Drive
Bremerton, WA 98310
Location: Approximately 210 feet of Yantic Avenue south of 1st Street and the alley
lying south of 1st Street and between Yantic and Hartford Avenues.
B. Attachment: Vicinity Map and Vacation Map
BACKGROUND
The City of Bremerton has initiated the vacation process to vacate the northerly 210 feet of
Yantic Avenue south of 1st Street and the alley lying south of 1st Street and between Yantic and
Hartford Avenues. The two right of ways have not been developed. The terrain for both right of
ways is hilly with steep slopes.
The vacation will eliminate a two portions of undeveloped right of way, not needed for Public
Use.
RIGHT OF WAY CONDITIONS
· Functional Classification Local Access
· Existing R-O-W Width 30 feet for Yantic
12 feet for Alley
· Proposed R-O-W Width N/A
· Pavement Width None
· Surface Type None
· Curb and Gutter None
· Sidewalks None
January 18, 2001
Forest Street Vacation
Page 1 of 6
HEARING CONSIDERATIONS
· BMC 11.20.120 sets forth issues that the City Council needs to determine at the conclusion of the
Vacation Hearing. These issues and the staffposition are:
1. Whether the street, alley or portion thereof is no longer required for public use and
vacation of the described portion will better serve the public good.
Staff Position:
This portion of the street is not required for public use.
2. Whether the vacation is consistent with the City Comprehensive Plan.
Staff Position:
The proposed vacation does not conflict with the Comprehensive Plan.
3. Whether continued use of the proposed vacation as a public way is not of such public
benefit as to justify the costs of maintenance.
Staff Position:
This portion of the right-of-way is not being used for public way purposes.
4. Whether substitution of a new and different thoroughfare would be more useful to the
public.
Staff Position:
Since this is not used as a thoroughfare, this section is not applicable.
5. Whether conditions may so change in the future as to provide a greater public use or
need than presently exists.
Staff Position:
There is no anticipated future public use.
6. Whether objections to the proposed vacation are made by owners of private property
abutting the same.
Staff Position:
No objections have been received from any abutting property owners to date.
January 18, 2001
Forest Slxeet Vacation
Page 2 of 6
SHORELINE ACCESS
This portion of right-of-way does not provide shoreline access.
UTILITIES
All private utility companies have been contacted. An easement for Puget Sound Energy will be
required for the alley. An easement for Cascade Gas and the City Water Department will be
required for Yantic Avenue.
SUFFICIENCY OF SIGNATURES
N/A. This is a City initiated vacation of right-of-way.
COMPENSATION
N/^
STAFF COMMENTS
No objections were noted from Police, Engineering, City Attomey or Community Development
staff.
Staff recommends that this Street Vacation be approved as requested without modification.
January 18,2001
Forest Street Vacation
Page 3 of 6
View of Yantic Avenue looking south from 1st Street.
January 18, 2001
Forest Street Vacation
Page 4 of 6
View of vacation of Yantic Avenue from end of developed roadway looking north.
January 18,2001
Forest Street Vacation
Page 5 of 6 ~--~
View of alley from Hartford looking northerly.
January 18, 2001
Forest Street Vacation
Page 6 of 6
BREMERTON CITY COUNCIL
1. SUBJECT: ORDINANCE # ., FOR AGENDA OF: February 21,2001
VACATING THE SOUTHERLY 1,000 ORIGINATING DEPT: PW&U Engineering Div.
FEET OF FORREST STREET BETWEEN 1sT ORIGINATOR: Jennifer Strehler, City Engineer
STREET (VACATED) AND KITSAP WAY. DATE SUBMITTED: February 12, 2001
2. CLEARANCES: (comment on back iflq:~ss~ 3. EXHIBITS
Director, Public Works/Utilities ff't/-~'"-3~z':9 .... X~. ~ce #
City Attorney 1"~ ~,5~__ B. Site Map.
Direcior, Commtmity Development ~ 0_)dr~3 C. Staff Report.
Council Budget & Finance Committee
Operations Committee ,.:.~
ENDORSEM~_.E~3I' X ~NF.O~ APPROVED B Y COUNCIL~P.R~')Sll)ENT FOR ~JBMITTAL:
MAYOR ~ COUNCIL PRESIDENT~' ~._~--'....-~~~~'
4. SUMMARY STATEMENT AND REQUIREMENT FOR C(fUlqCIL ACTION:
The City has initiated the vacation of the southerly 1,000 feet of Forrest Street between 1s~ Street (vacated) and
Kitsap Way. A hearing date of February 21, 2001 was set by the City Council on January 31, 2001. Forrest
Street is approximately 1,600 feet in length. It begins at the southerly right-of-way of Kitsap Way and has been
developed for approximately 600 feet. The remainder of the right-of-way is undeveloped. The terrain for the
undeveloped portion of the right-of-way is hilly with steep slopes that are not needed for public use. Posting of
the hearing notices and mailing to the adjacent property owners has been completed in accordance with State
law and the Bremerton Municipal Code. Less than 50 percent of the abutting property owners have submitted
written objections to the City Clerk's office. This is a Class III right-of-way and compensation is not required.
The request before the City Council is to approve, disapprove, or modify this vacation of the southerly 1,000 feet
of Forrest Street between 1st Street (vacated) and Kitsap Way.
8. RECOMMENDATION:
A. Motion to approve the attached Ordinance, vacating the southerly 1,000 feet of Forrest Street between 1 st
Street (vacated) and Kitsap Way, on first reading.
B. Motion to approve Ordinance # , vacating the southerly 1,000 feet of Forrest Street between 1 st
Street (vacated) and Kitsap Way, on second reading.
9. RESPONSIBLE OFFICIAL: City Engineer
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OFACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE DATE:
11. AGENDA BILL NO: 01 --04 7
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The area will remain right-of-way and will continue to be managed by the City.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER
RESOURCES:
Staffing: No impact.
Budget: No impact
Facilities/Equipment: No impact
7. RESEARCH SOURCES
BMC 11.20 Vacation of Public Rights-of-Way
RCW 35. 79 Streets
ab, Agenda Bills 2001, Forrest Street, ROW Vac
Filed for Record at Request of:
When Recorded Return to:
Name: Bremerton City Clerk
Address: 239 Fourth Street
Bremerton, WA 98337
Document Title: Ordinance No.
Reference Number of Document Assigned or Released: Not Applicable
Grantor's Name: City of Bremerton
Grantee's Name: Not Applicable
Tax Parcel #: Not Applicable.
Abbreviated Legal Description: SW QTR., SW QTR., SEC. 15, T. 24 IN., R. 1 E.,
W.M.
ORDINANCE #
AN ORDINANCE Vacating the southerly 1,000 feet of
Forrest Street between 1st Street (vacated) and Kitsap Way.
WHEREAS, the City of Bremerton initiated the vacation process of the right-of-
way; and
WHEREAS, notice has been posted and published according to law; and
WHEREAS, the City Council finds that the portion of the right-of-way set forth
herein is not needed for present or future use and should be vacated to allow the
abutting property owners to maintain the parcel, now therefore,
THE CITY OF BREMERTON DOES HEREBY ORDAIN:
Section 1. Vacation. The following rights-of-way are hereby vacated to the
adjoining property owners.
A PORTION OF THE PLAT OF GOODFELLOW'S NAVY YARD TRACTS, AS
RECORDED IN VOLUME 3 OF PLATS, PAGE 52, RECORDS OF KITSAP COUNTY,
WASHING, SITUATE IN THE SOUTHWEST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 15, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP
COUNTY, WASHINGTON, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
Ordinance Vacating the Southerly 1,000 Feet of Forrest Street
Page 1
THAT PORTION OF FORREST STREET FRONTING LOTS 25 THROUGH 34,
INCLUSIVE, IN BLOCK 1 OF SAID PLAT.
Section 2. Reservation of Easements, An easement is reserved for Puget
Sound Energy for operation, maintenance and repair of power lines over, under and
upon the following described real property:
THE NORTHERLY 100 FEET OF THE BELOW DESCRIBED VACATION:
A PORTION OF THE PLAT OF GOODFELLOW'S NAVY YARD TRACTS, AS
RECORDED IN VOLUME 3 OF PLATS, PAGE 52, RECORDS OF KITSAP COUNTY,
WASHINGTON, SITUATE IN THE SOUTHWEST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 15, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP
COUNTY, WASHINGTON, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
THAT PORTION OF FORREST STREET FRONTING LOTS 25 THROUGH 34,
INCLUSIVE, IN BLOCK 1 OF SAID PLAT.
Section 3. Effective date. This vacation shall become effective ten (10) days
from passage and publication.
APPROVED by the City Council of the City of Bremerton this day of
,2001.
PASSED by the City Council of the City of Bremerton this day of
,2001.
JOHN E. LAW, Council President
APPROVED this day of ., 2001.
LYNN HORTON, Mayor
ATTEST:
KATHLEEN McCLUSKEY, City Clerk
Ordinance Vacating the Southerly 1,000 Feet of Forrest Street
Page 2
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,.,>j, 2nd
STREET VACATION REQUEST
PORTION OF FORREST STREET
ENGINEERING STAFF REPORT
CITY COUNCIL HEARING DATE: 21 February, 2001
PREPARED BY: Gunnar Fridriksson
SUMMARY
A. Applicants: City of Bremerton
3027 Olympus Drive
Bremerton, WA 98310
Location: The southerly 1000 feet of Forrest Street between 1st Street (vacated) and
Kitsap Way.
B. Attachment: Vicinity Map and Vacation Map
BACKGROUND
The City of Bremerton has initiated the vacation process to vacate the southerly 1000 feet of
Forrest Street. Forrest Street is approximately 1600 feet in length. It begins at the southerly right
of way of Kitsap Way and has been developed for approximately 600 feet. The remainder of the
right of way is undeveloped. The terrain for the undeveloped portion of the right of way is hilly
terrain, with steep slopes.
The vacation will eliminate a portion of undeveloped right of way, not needed for Public Use.
RIGHT OF WAY CONDITIONS
· Functional Classification Local Access
· Existing R-O-W Width 30 feet
· Proposed R-O-W Width N/A
· Pavement Width None
· Surface Type None
· Curb and Gutter None
· Sidewalks None
HEARING CONSIDERATIONS
January 18, 2001
Forest Street Vacation
Page 1 of 4
BMC 11.20.120 sets forth issues that the City Council needs to determine at the conclusion of the
Vacation Hearing. These issues and the staff position are:
1. Whether the street, alley or portion thereof is no longer required for public use and
vacation of the described portion will better serve the public good. ,
Staff Position:
This portion of the street is not required for public use. ,
2. Whether the vacation is consistent with the City Comprehensive Plan.
Staff Position:
The proposed vacation does not conflict with the Comprehensive Plan.
3. Whether continued use of the proposed vacation as a public way is not of such public
benefit as to justify the costs of maintenance.
Staff Position:
This portion of the right-of-way is not being used for public way purposes.
4. Whether substitution of a new and different thoroughfare would be more useful to the
public.
Staff Position:
Since this is not used as a thoroughfare, this section is not applicable.
5. Whether conditions may so change in the future as to provide a greater public use or
need than presently exists.
Staff Position:
There is no anticipated furore public use.
6. Whether objections to the proposed vacation are made by owners of private property
abutting the same.
Staff Position:
No objections have been received from any abutting property owners to date.
SHORELINE ACCESS
This portion of right-of-way does not provide shoreline access.
January 18, 2001
Forest Street Vacation
Page 2 of 4 & ~
UTILITIES
All private utility companies have been contacted. An easement for Puget Sound Energy for the
northerly portion of the vacation will be required. -
SUFFICIENCY OF SIGNATURES
N/A. This is a City initiated vacation of right-of-way.
COMPENSATION
N/A
STAFF COMMENTS
No objections were noted from Police, Engineering, City Attorney or Community Development
staff.
Staff recommends that this Street Vacation be approved as requested without modification.
January 18, 2001
Forest Street Vacation
Page 3 of 4
View of street from end of developed roadway south.
January 18,2001 /.-
Forest Street Vacation
Page 4 of 4
, AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: RESOLUTION# q~O;k.. FOR AGENDA OF: February 2_1 ~ 2001
APPROVING THE CSO PLAN UPDATE ORIGINATING DEPT: PW&U Engineering Division
AND FACILITY PLAN. ORIGINATOR: Jennifer Strehler, City Engine ~
DATE SUBMITTED: January 22, 2001
2. CIiEARA2NCES: (comment on back ift~ces~tr'~ / 3. EXItlBITS
Director, Public Works/Utilities _ ~/~Z.~,~~ ~on # 3 ~/~) ~ ·
~3~' City Attorney' ~~~ B. City CSO Basin Map.
Council Budget & Finance Committee
Council Operations Committee
~kf~)~E~ ;~ff .I~~ON APPROVEDcouNCiL PRESIDE~'~'-~--~'~z-~:BY COUNCIL-PRES~))EBIT FOR SUBMIt.
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
Staff have developed the Update to the Combined Sewer Overflow (CSO) Reduction Plan for compliance with
State Regulations. The CSO Plan Update serves as the Facility Plan for CSO Reduction Improvements to several
CSO Basins including; Stevens Canyon, Cherry Avenue, East Park, Tracyton Beach, Trenton Avenue, and Pacific
Avenue. The update additionally revises the Callow Avenue Facility Plan. The Facility Plan outlines required
stormwater separation along with conveyance improvements to the new CSO Treatment Facility for CSO Basins
in East Bremerton. The Callow Avenue Basin Facility Plan is revised to add conveyance along with storrnwater
separation. Implementation of the recommended improvements outlined in the CSO Plan Update is required for
compliance with State Regulations.
8. RECOMMENDATION:
Motion to pass Resolution # ..53,~' (.~7)__ , which approves the CSO Plan Update and Facility Plan for the reduction
of combined sewer overflow.
9. RESPONSIBLE OFFICIAL: Director of Public Works and Utilities
ENFORCEMENT OFFICIAL: Director of Public Works and Utilities
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE
DATE:
11.
AGENDA BILL NO: 0i-04'
/08
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
Formal approval of the Facility Plan by the City will not have occurred. Approval of the Plan by the City is required b'
the Washington State Department of Ecology. The ability to pursue grants and loans will be impaired.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
No impact. Implementation of the Combined Sewer Overflow Program is a continuing effort with the schedule manda
by an existing Federal Court Consent Decree and Washington State Department of Ecology Order on Consent.
7. RESEARCH SOURCES
ab, Agenda Bills 200l, CSO Plan Update and Facility Plan
RESOLUTION NO. 7k,~ 0 ~
A RESOLUTION approving the Combined Sewer Overflow (CSO)
Plan Update and Facility Plan for the reduction of combined sewer
overflow events in the city of Bremerton.
WHEREAS, Washington State Law limits the number of combined sewer overflow (CSO)
events to one overflow event per year, per outfall; and
WHEREAS, the State of Washington, Department of Ecology has issued an Order on
Consent requiring CSO events to be limited to one per year; and
WHEREAS, the City has been constructing CSO reduction projects throughout the city
reducing the volume of overflows; and
WHEREAS, the City has completed a Facility Plan for the city which evaluates alternatives
for CSO reduction and selects the most cost effective alternative;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY
COUNCIL OF THE CITY OF BREMERTON THAT:
The CSO Reduction Plan Update and Facility Plan, dated October, 2000, attached hereby reference,
for the reduction of combined sewer overflow events in the city of Bremerton is approved for
implementation.
PASSED by the City Council of the City of Bremerton this day of
,2001.
JOHN E. LAW, Council President
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FORAGENDA OF: FEBRUARY 2t, 2001
ORIGINATING DEPT: C I TY COUNC I L
RESOLUTION NO. 2~).~T0 HIRE A
ORIGINATOR: CECIL McCONNELL, COUNCIL MEMBER
CITY ATTORNEY. DATE SUBMITTED: FEBRUARY 8, 2001
2. CLEARANCES: (comment on back if necessary) 3. EXHIBITS:
~k~(~ity Attorney -~=~'~ 5 ..c~,,, t~,~u~,c,,,~. Resolution No. ,~ ~ CT 'i'~
F&B Chairman ~-o~. ~~~
Operations Chairman ~'/~~ ~-~p~' J
ENDORSEMENT X INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The City Attorney is an essential and necessary employee of the City. The current position is now vacant. It is
therefore recommended that the position be advertised and filled as soon as possible to maintain the efficient
operation of the City.
8. RECOMMENDATION:
Move to pass Resolution No.~ ~, approving the advertising and hiring of a City Attorney.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION:
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE: DATE:
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT (continued):
5. IMPACT ON NON-PASSAGE:
6. IMPACT ON STAFFING. BUDGETS, FACILITIES. EQUIPMENT OR OTHER RESOURCES:
7. RESEARCH SOURCES:
RESOLUTION #
A RESOLUTION to hire a City Attorney.
WHEREAS, a City Attorney is a necessary employee of the City;
WHEREAS, Bremerton does not currently have a City Attorney; and
WHEREAS, without a City Attorney, the City is being required to expend large
sums of money for legal representation that is necessary for the efficient operation of
the City;
NOW, THEREFORE, BE IT RESOLVED BY THE BREMERTON CITY
COUNCIL THAT:
The City Council does hereby recommend that the Mayor advertise and obtain a
City Attorney.
PASSED, by the City Council of the City of Bremerton this day of
February 2001.
JOHN LAW
Council President
ATTEST:
KATHLEEN McCLUSKEY, City Clerk